- Tuesday, May 14, 2024
Talks over the deal have progressed but an early conclusion looks less likely after British negotiators returned from India last week without the two sides reaching an agreement on a various issues.
By: Shubham Ghosh
INDIAN prime minister Narendra Modi held talks over phone with his British counterpart Rishi Sunak on Tuesday (12) and both leaders reaffirmed their commitment to securing a new trade deal between the two nations even as the prospect of the agreement getting finalised before the general elections in India has faded.
The two democracies have shown intent in reaching the free trade agreement (FTA) for two years now but it seems the finishing line is still some distance away as they held start-stop discussions.
The UK is also set to go to national elections this year.
“We reaffirmed our commitment to further strengthen the bilateral comprehensive strategic partnership and work for early conclusion of a mutually beneficial free trade agreement,” the Indian PM, who is looking to win his third straight term in office since 2014, said in a post on X on Tuesday after the call with the Conservative leader.
Read: India election not a deadline for trade deal: Badenoch
The talks over the FTA have progressed but an early conclusion looks less likely after British negotiators returned home from India last week without the two sides reaching an agreement on a range of key areas. British trade minister Kemi Badenoch said the talks were “challenging” and that the general elections in India were not a deadline.
Read: Modi, Sunak speak over Middle East peace, mutually beneficial free trade agreement
Had a good conversation with PM @RishiSunak. We reaffirmed our commitment to further strengthen the bilateral Comprehensive Strategic Partnership and work for early conclusion of a mutually beneficial Free Trade Agreement.
— Narendra Modi (@narendramodi) March 12, 2024
British ministers have said that they are prepared to take time to ensure that the right deal is secured instead of accepting an agreement that might be quicker to negotiate but has a limited scope, a point Sunak stressed during his call with the Indian PM on Tuesday.
“The prime minister (Sunak) reiterated the importance of reaching an ambitious outcome on goods and services,” Sunak’s spokesperson said in a readout of the call.
“They agreed to remain in close contact and looked forward to further progress on trade talks.”
The conversation between Modi and Sunak comes two days after India inked a free trade pact with a group of European nations — Switzerland, Norway, Iceland and Liechtenstein — committing to reduce tariffs, while New Delhi receives $100 billion in investments over the next decade and half.