India-UK FTA enters the final lap

The free trade agreement (FTA) between India and the UK will enter the final round(14th round) from 10th January and it is likely to take up the remaining issues such as pertaining to Scotch whisky and other pending segments.

The final round is expected to be the most contentious because of technical issues and sensitivities. The UK is seeking greater access to the Indian market for items such as Scotch whisky, dairy products, automobiles including electric vehicles.

India has a high import duty of 150 percent on whisky and 100 percent on automobiles. India has expressed its willingness to substantially reduce tariffs on automobiles and whisky, provided the UK reciprocates as per the Indian conditions.

The India-UK FTA negotiations were launched on 13th January 2022 and 24 out of total 26 chapters have been mutually agreed and remaining two are under consideration.