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The story so far:

• Recently, India and Britain launched trade talks.
• Aim: to finalise a free trade agreement (FTA) to double bilateral trade by 2030.

 

What is an FTA?

• An FTA is an agreement between two countries wherein it allows free flow of goods and services to and from both sides, removing all tariff barriers to boost trade with one another.

 

Which country does the U.K. have an FTA with?

• After Brexit (U.K. coming out of European Union), and Britain can now sign trade pact with other nations.
• K.-Australia FTA: U.K. signed an FTA with Australia on December 17, 2021, eliminating almost 99% of tariff on both sides, allowing free flow of goods between the two countries. This pact will help Britain access the Pacific Rim through the Comprehensive and Progressive Trans-Pacific Partnership.
• Comprehensive and Progressive Trans-Pacific Partnership is an 11-nation trade conglomerate including Australia.

 

What does it mean for India?

• Brexit paved the way for Britain to freely and comprehensively negotiate a new free mega trade deal with India.
• The £1billion investment and commercial trade deal India signed with Britain on May 4.
• India’s trade would see a quantum jump when the free trade pact is signed, from £23.3 billion through an Enhanced Trade Deal to £50 billion post-FTA.
• With India set to becoming the world’s third largest economy by 2050, India would becomes the U.K.’s most preferred partner.

 

What is India seeking from the U.K.?

• Removing all trade bottlenecks.
• Green trade: India is also seeking cooperation from Britain to reduce its carbon footprint by 45% and promoting green energy.

 

What are the sectors that will benefit?

• Agriculture: The second Green Revolution, aimed at increasing food production in India to 400 million tonnes in the next 15 years, is led by plant ecology scientist Howard Griffiths of Cambridge University under Transforming India’s Green Revolution by Research and Empowerment for Sustainable food Supplies (TIGR2ESS) would strengthen alliance between Indian and British experts in social policy and science, hydrology and crop science.
• Education: India would allow more U.K. universities to open their branches in the subcontinent after the FTA.

https://www.thehindu.com/news/national/the-fta-talks-between-india-and-the-united-kingdom/article38369225.ece?homepage=true