India and UK Free Trade Agreement (FTA)

Context

  • Recently, India and the United Kingdom (UK) affirmed their shared commitment towards Bilateral Trade and Investment Agreement (BTIA) a Free Trade Agreement(FTA) during the 14th virtual Joint Economic and Trade Committee (JETCO) meeting.

Key Takeaways:

  • The UK is a permanent member of the UN Security Council, and one of the strategic partners of India.
  • Strengthening bonds with the trade would seek UKs support at global issues like standoff with Chinain the Ladakh sector of the Line of Actual Control (LAC) and claim for permanent seat at UNSC.

Back to Basics

India and UK

  • India’s most important trading partners.
  • UK is a significant partner of India as an FDI investor after Mauritius and Singaporewhich ranked second and first respectively.
  • K. is one of the largest investors in India,among the G20 countries.
  • Sectors of Engagement with the UK-Pharma, textiles, leather, industrial machinery, furniture, and toys.

Joint Economic Trade Committee

  • A forum to United Kingdom companies to enhancetheir links and develop new partnerships with India business and decision-makers.
  • Government to Government negotiations, which address issues of market liberalization and market access, are conducted through the JETCO process.
  • One of the key objectives of the JETCO process is to unveil opportunities for UK’s most prominent institutional investors to invest in India.

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