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INDIA-FTA Could Come In December: BBG

UK

Bloomberg reportingthat according to people familiar with the matter, the UK and India could reach agreement on a free trade deal by December, with an announcement possible in the aftermath of the announcement of results for a series of state elections taking place in November. BBG: "There are still some differences around whether taxation will be included in a proposed investment protection pact, as well as the UK’s demand that tariffs be cut on electric vehicle exports to India,".

  • Reaching an FTA would come as a boon to both sides. BBG: "British Prime Minister Rishi Sunak would likely showcase the deal as a benefit of Brexit, while it would help his Indian counterpart Narendra Modi tout more local manufacturing and job creation when he seeks a third term next year."
  • There are a number of 'chapters' in the FTA that remain unresolved, including student visas, market access for British agricultural products and "the inclusion of tax issues in an investment protection proposal."
  • Voters in five states: Chhattisgarh, Madhya Pradesh, Mizoram, Rajasthan, and Telegana go to the polls in November. Two are currently controlled by the main opposition Indian National Congress (INC), one by Modi's BJP, and the two others by regional parties.
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