India-UK Free Trade Agreement Expected to Be Closed by March 2023

Likely, the Free Trade Agreement (FTA) between India and the United Kingdom will be signed by March 2023, according to a source in the commerce ministry.

A pact between India and its former colonial ruler has been negotiated for about 18 months to boost trade and investment between the two countries. It was originally planned to conclude the talks by Diwali, but the talks got delayed.

Shortly, it will be decided whether these discussions will take place at the ministerial or secretarial level. It has been reported that the two countries are expected to finalize the FTA by March 2023, according to the source.

According to Andy Street, a member of Britain's ruling Conservative Party and the mayor of the West Midlands, India should reduce tariffs on manufactured goods. This would benefit sectors such as the automotive industry in the country.

There are 14 chapters out of the 26 chapters of the trade deal have been finalized. UK delegation is expected to try to find agreement on the finer details of the remaining chapters during their visit. 

While on a phone call with his Indian counterpart Narendra Modi, Britain's new prime minister, Rishi Sunak, the country's first leader of Indian descent, expressed his hope that the trade agreement would be finalized by the end of the month.