New Delhi: In a bid to bolster its trade relations on the global stage, India is pushing to finalize free trade pacts with key partners before the upcoming elections, according to a government official.
Currently, senior officials from India and the United Kingdom are immersed in the 13th round of negotiations over the proposed trade deal. This comes on the heels of a visit by UK Business and Trade Secretary Kemi Badenoch to India, where she engaged in high-level discussions.
During her visit, Badenoch held bilateral meetings with Minister of Commerce and Industry Piyush Goyal and Finance Minister Nirmala Sitharaman, further underscoring the commitment of both nations to strengthening economic ties.
Significantly, prior to this ongoing round of talks, both parties had already concluded discussions on 19 out of the total 26 chapters outlined in the proposed Free Trade Agreement (FTA). Investment-related matters are being deliberated separately as part of a bilateral investment treaty between India and the UK.
An official familiar with the negotiations remarked, “The UK-India FTA is essentially ready for signing, with both governments prepared on most subjects.” This indicates the tangible progress made towards cementing this pivotal agreement.
In addition to the UK pact, India is actively engaged in discussions with the Gulf Cooperation Council (GCC) to solidify a free trade agreement encompassing the Gulf nations. This is of utmost importance, considering that the Arab region constitutes India’s largest trading bloc, with trade surpassing $240 billion in fiscal year 2022-23. Within this impressive figure, over $184 billion is attributed to GCC countries alone. The UAE maintains its position as India’s third-largest trading partner, while Saudi Arabia ranks as the fourth-largest.
According to the official, it is anticipated that these negotiations with the Gulf nations will conclude within the next three to four months, underscoring India’s commitment to expanding its trade footprint in the region.
Furthermore, the Indian government is actively pursuing cooperative mechanisms with Italy to stimulate investments and economic collaboration. Minister Goyal is set to embark on a follow-up visit to Italy soon after a prior visit in April of this year, indicating the seriousness of both nations in forging closer economic ties.
As the upcoming elections draw near, India’s proactive approach to establishing and enhancing trade agreements demonstrates its commitment to fostering economic growth and strengthening its position in the global trade arena. These developments signal the country’s resolve to remain a formidable player in the international trade landscape.
