Will India-UK free trade agreement get stuck in the middle again, the resignation of Truss increases the difficulty

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India-UK free trade agreement

 

 

Discussions have been going on between India and Britain for a long time regarding the Free Trade Agreement. Earlier it was being said that by Diwali, there will be an agreement between the two countries. But the resignation of Liz Truss has again implicated the deal in the middle.

British Prime Minister Liz Truss has resigned as PM. He has to leave his PM chair only after 45 days. This resignation has again increased the political and economic instability in Britain. India is also going to be affected by this political upheaval in Britain. There is a discussion going on for a long time that there will be a free trade agreement between India and Britain. It was even being said that both the countries would announce it by Diwali, but now that Liz Truss has resigned from her post, this agreement seems to be getting stuck again in the middle.

Why delay in free trade agreement?

In fact, it was said earlier that Prime Minister Narendra Modi himself will go to Britain during Diwali and then the Prime Ministers of both the countries will meet and take a big decision on the Free Trade Agreement. But the news is that now PM Modi may not visit Britain, seeing the kind of political instability going on there, he finds it difficult to go. In that case, implementing this free trade agreement may prove to be a challenge.

Controversial statements also increased the difficulty

Now talking to The New Indian Express, an official of the Government of India has said that the pace of talks between the two countries was affected. Due to the ongoing political instability in Britain, talks were stalled several times. In such a situation, it will be difficult to tell right now how long this free trade agreement will be possible. The important thing is that this agreement will be taken only if it is beneficial for both the countries. Now due to political instability, there is a delay in finalizing the deal, some controversial statements have also worked to slow down the process.

Indian-origin British Home Minister Suella Braverman, who recently resigned from her post, opposed the Free Trade Agreement, saying it would increase the influx of Indian immigrants to Britain. He had said that many Indians stay in the UK even after the expiry of their expatriate visas. He had said that the British people did not vote to withdraw from Brexit because the British border should be opened to Indians in this way. There was a lot of ruckus on that statement of his and it worked to create distance between the two countries.

Why is FTA necessary for India?

Talking about the Free Trade Agreement, under this agreement, the trade between the two countries is increased, along with it, the work of eliminating any obstacles in import and export is done. Subsidies, quotas, tariffs are also reduced in the free trade agreement itself. Its benefit reaches both the countries. Talking about India, if there is a free trade agreement, big growth can be seen in the export sector. Apart from this, growth can also be registered in sectors like Agro, Leather, Textile. At the same time, due to this agreement in Britain and India, employment opportunities will also increase manifold. At present, India and Britain are in trade worth 50 billion dollars, the ambitious target has been kept at 100 billion dollars. Now this can be accomplished only when trade can take place between the two countries without any hindrance.


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