Skip to content
Search

Latest Stories

U.K. Parliament panel warns against rushing India FTA to meet Diwali deadline

Trade experts say UK-India FTA is unlikely to be affected by the leadership change at Downing Street.

U.K. Parliament panel warns against rushing India FTA to meet Diwali deadline

A U.K. parliamentary panel on Friday warned the government against accepting a "poor" deal to rush things through simply to meet a Diwali deadline set for the completion of a landmark free trade agreement (FTA) with India.

The House of Commons International Agreements Committee, in a report entitled ‘UK-India free trade agreement: Scrutiny of the Government’s Negotiating Objectives’, questions the Diwali deadline set for the conclusion of the negotiations by outgoing Prime Minister Boris Johnson during his visit to India in April.


The committee cautioned that could risk giving up a good deal for a fast one, by setting a “time ambition over and above content”.

“A growing economy, as well as a growing middle class and consumer market, make India an attractive trading partner for the UK. The UK government, however, must not accept a poor agreement simply to meet a deadline,” said Baroness Dianne Hayter, chair of the committee.

“We have noted that the aspirations in the Negotiating Objectives are particularly challenging because some would require changes to India's own cultural and legal approach, which are unlikely to be achieved, or would take a long time,” she said.

“We reiterate our recommendation that the government should publish a trade policy, showing how trade links into broader foreign policy, security, defence and other domestic objectives, as well as labour, women's and human rights, and the environment. This will enable trade policy to be understood in relation to other priorities and enable us to assess the impacts and trade-offs,” she said.

The cross-party committee claims that India’s “historically protectionist policies”, different regulatory approaches and business practices would mean changes in domestic legislation, which could be a lengthy process to implement.

It also references the practice in India of requiring businesses to make so-called “facilitation payments”, different administrative requirements at the national and state levels, a lengthy application process for business permits, a complex tax regime, low levels of contract enforcement and limited IP protections.

“The committee, therefore, questions the arbitrary Diwali deadline set for the conclusion of the negotiations, cautioning that the government could risk giving up a good deal for a fast one by setting a time ambition over and above content,” it said.

The committee notes that although the Boris Johnson-led government has emphasised that it intends to conclude an agreement that is comprehensive, it is unclear how comprehensive that agreement can be “given India’s challenging regulatory and business environment”.

“Because the government’s objectives do not take sufficient account of the Indian context, they can come across as overly ambitious or unrealistic, with some (for example on procurement) seeming particularly unattainable,” the report warns.

The committee has called on the government to publish a comprehensive trade policy that provides a framework within which all negotiations can be conducted.

This is now expected to be taken up after the Parliament is back from its summer recess in September, by which time the U.K. is expected to have a new Prime Minister—either former Chancellor Rishi Sunak or Foreign Secretary Liz Truss.

While trade experts have indicated that the ambition for a UK-India FTA is unlikely to be affected by the leadership change at Downing Street, the Diwali deadline for its completion has had a question mark.

“I would much rather have a more comprehensive deal that takes slightly longer to complete. It’s good to have a deadline, good to have that target to try and finish by Diwali. But it may not be the end of October but the end of December; my target is the end of this year,” Confederation of British Industry President Lord Karan Bilimoria, who heads the U.K.-India Industry Taskforce as a joint commission to enhance cross-industry collaboration on the ongoing trade negotiations, said recently.

(ANI)

More For You

british-muslims-iStock

The study noted that this identification was not due to any doctrinal obligation but was influenced by the perception that many Muslims do not feel fully accepted as British. (Representational image: iStock)

iStock

Majority of British Muslims identify by faith first, study finds

A STUDY by the Institute for the Impact of Faith in Life (IIFL) has found that most British Muslims identify primarily with their religion rather than their nationality.

The research, based on a survey of 815 British Muslim adults by Whitestone Insight, revealed that 71 per cent of respondents identified as Muslim first, while 27 per cent identified as British, English, or Scottish first.

Keep ReadingShow less
Car Tax Changes: EV Owners Now Required to Pay for the First Time

Owners of electric vehicles registered on or after 1 April 2025 will pay £10 for the first year, followed by the standard VED rate of £195 from the second year. (Representational image: iStock)

iStock

Car tax changes take effect: EV owners to pay for first time

FROM today, 1 April 2025, electric cars, vans, and motorcycles in the UK will be subject to Vehicle Excise Duty (VED) for the first time.

The change, introduced in the 2022 Autumn Statement by former Conservative Chancellor Jeremy Hunt, aims to make motoring taxation fairer.

Keep ReadingShow less
scotland-minimum-wages-iStock

Full-time workers on the National Living Wage will receive an annual pay increase of £1,400 in real terms. (Representational image: iStock)

iStock

Wage increase takes effect for thousands of workers in Scotland

HUNDREDS of thousands of workers in Scotland will see a pay increase as new National Living Wage and National Minimum Wage rates take effect from Tuesday.

The changes will benefit approximately 220,000 people, according to STV News.

Keep ReadingShow less
uk-energy-bill-iStock

Water bills, energy prices, and council tax are rising, while the minimum wage has also increased (Representational image: iStock)

iStock

April bill increases put financial strain on single parents

A RANGE of essential household bills are increasing from April, with Citizens Advice warning that single parents will be among the hardest hit.

Water bills, energy prices, and council tax are rising, while the minimum wage has also increased, BBC reported.

Keep ReadingShow less
Netflix drama Adolescence to be screened in UK schools
Stephen Graham and Owen Cooper in 'Adolescence'
Netflix

Netflix drama Adolescence to be screened in UK schools

THE NETFLIX drama Adolescence will be shown in UK secondary schools as part of efforts to address harmful online influences on young boys, officials announced on Monday.

The show has sparked debate over the impact of toxic and misogynistic content on the internet. Prime minister Keir Starmer met the show's creators, charities, and young people at Downing Street, calling the initiative an important step in starting discussions about the content teenagers are exposed to online.

Keep ReadingShow less