Considering a lot of business is calling India

saw this year january Formal launch of talks for India-United Kingdom Free Trade Agreement (FTA) When Commerce and Industry Minister Piyush Goyal met Anne-Marie Trevelyan, UK’s Foreign Minister for International Trade, during his visit to New Delhi. The aim of these negotiations was to achieve a “fair and balanced” FTA and cover more than 90% of the tariff lines so as to reach the bilateral trade target of around $100 billion by 2030. It has been suggested that the agreement is a “new-age FTA” that covers more than just goods, services and investments and includes areas such as intellectual property rights, geographic indications, sustainability, digital technology and anti-corruption.

Despite some potential challenges, India-UK bilateral ties are gaining momentum these days, which both sides are confident of moving forward. Mr Goyal was emphasizing that “nothing in this agreement is necessarily a deal-breaker,” and suggested that one should not “worry about issues that are sensitive to any country”. because both sides agree that sensitive issues are not our priority”. Ms Trevelyan saw the deal as a “golden opportunity to put UK businesses at the forefront of the line as the Indian economy continues to grow”, which would be “a huge new opportunity for our great British producers and manufacturers across many industries”. Will open up the market” food and drink for services and motor vehicle “.

There have been indications that instead of the two countries trying to tackle all sensitive issues at once, an interim agreement may be in place to cover the “low hanging fruit”, followed by a full FTA in a year’s time. can be followed. Such an early harvest deal can often be detrimental to the prospects of a full FTA, but given India’s poor reputation in concluding FTAs, it may not be a bad strategy to keep negotiators engaged in the process.

a new business approach

As the global economy undergoes a fundamental transformation in the aftermath of COVID-19 and supply chains restructured, India cannot afford to lose any more time to organize its home. New Delhi is hoping to conclude its first FTA in a decade with the United Arab Emirates this year. And with Australia there is one more to come. If concluded, the India-UK FTA will be the front line at a time when New Delhi is demonstrating a new seriousness of purpose as it concludes 16 new trade agreements with countries as diverse as Canada, the United States and many more. is increasing. European Union and South Korea.

In fact, just before the start of the FTA talks with the UK, India and South Korea also decided to accelerate the upgrade of the existing FTA, formally called the Comprehensive Economic Partnership Agreement. The Narendra Modi government is showing a newfound flexibility in engaging with its partners on trade as it seeks balanced trade agreements at a time when there are new trade blocs in the Indo-Pacific region such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement . The Trans-Pacific Partnership (CPTPP) is gaining traction. Without strong economic content, a strategic partnership would have no meaning in the Indo-Pacific, where China’s economic clout is increasing day by day.

Cause

Britain has struck a trade deal with India, which is one of the priorities after Brexit as it seeks a bigger role in the Indo-Pacific. India is at the center of Britain’s Indo-Pacific ’tilt’, which has generated considerable interest around the world. British Prime Minister Boris Johnson came to office promising one of the most in-depth and comprehensive British foreign, security, development and defense reviews since the end of the Cold War. And the Integrated Review (‘A Comprehensive Expression of UK National Security and International Policy) released in March 2021 clearly outlined that, “In the coming decade, the UK will deepen our engagement in the Indo-Pacific, a greater will consistently establish a presence comparable to that of any other European country”. While the UK will begin trade talks this year with Canada, Mexico and the Gulf to underscore its ‘Global Britain’ credentials, a trade deal with India along with its membership in the CPTPP will provide the UK an economic opportunity for the Indo-Pacific.

Multiple factors at play

Several factors have brought together for the UK to adopt a more robust Indo-Pacific strategy: the trading effects of Brexit; Britain’s changing attitude towards China – from being a major proponent of China to perhaps the most fanatical in Europe; And the fact that the US, the UK’s closest ally and security guarantor, remains firmly focused on the Indo-Pacific. Like its allies in the region, the UK recognizes the importance of a free and open Indo-Pacific to global stability and prosperity, and has made clear its intention to deploy strategic assets to this end. London also wants to step up its efforts by entering the regional security framework. The Trilateral Security Partnership between Australia, the United Kingdom and the United States (AUKUS), announced in September 2021, will enable Australia to acquire nuclear-powered submarines, with assistance from the US and UK, in the region. I have given London a big voice.

Trade and investment will be a major dimension of this UK tilt. Brexit requires greater access to non-EU markets, and the UK’s changing relationship with China requires a diversification of trading partners. But this shift in focus is also driven by the recognition that the Indo-Pacific is now largely the driving force behind global economic growth. When it comes to combating climate change (particularly relevant to these low-lying states vulnerable to sea level rise), the UK seeks to leverage its historical connections, development work and its credibility to help the region To establish himself as a serious player. Where serious doubts remain about the staying power of the UK.

Through its Indo-Pacific leanings, the UK is finally setting a direction and purpose for post-Brexit foreign policy. And this priority has opened a new window for New Delhi and London to finalize their FTAs ​​expeditiously. It is a unique “now or never” moment and both sides are ready to seize it despite the challenges.

Harsh V. Pant is the Director of Research at the Observer Research Foundation, Professor of International Relations at New Delhi and King’s College London