Prime Minister Narendra Modi has a phone conversation with the new Prime Minister of Britain, Rishi Sunak. Modi congratulated him on becoming the PM. During the conversation, Prime Minister Modi expressed the hope of a Free Trade Agreement (FTA) between the two countries. PM Modi himself gave this information by tweeting.
PM Modi said he and Sunak agreed to finalize a comprehensive and balanced free trade agreement. We will work together to further strengthen our comprehensive strategic partnership.
Here, Rishi Sunak thanked PM Modi for his congratulations. Sunak wrote on social media – Thank you for your good wishes. The UK and India have a lot to offer. I am excited that our two great democracies will further strengthen their security, defense, and economic partnership in the years to come.
UK Foreign Secretary James Cleverly is also coming to India on Friday to hold talks with External Affairs Minister S Jaishankar. Britain's foreign ministry said the two would discuss strengthening diplomatic ties.
Boris Johnson had laid the foundation
The foundation of the Free Trade Agreement between India and Britain was laid by former Prime Minister Boris Johnson during his visit to India. After him, Liz Truss also supported this proposed trade deal and insisted on taking it forward.
According to reports, an agreement was to be made on this on Diwali itself, but due to the ongoing political upheaval in Britain, it could not happen. However, after the talks between Prime Minister Narendra Modi and Sunak, this deal is likely to be finalized at the earliest.
FTA draft in the final stage
Negotiations have been going on since January about a free trade agreement between India and Britain. In May 2021, Prime Minister Narendra Modi and the then British Prime Minister Boris Johnson announced an enhanced trade partnership as the first phase of potential free trade.
Since then five rounds of talks have been completed. In the fifth round in August, technical experts from both sides prepared a draft covering 15 policy areas in 85 separate sessions, on which a final decision is yet to be taken.
What is Free Trade Agreement?
The two-way trade between India and the UK is worth Rs 4 lakh crore. After the free trade agreement, there will be a big tax relief. Britain started a strategic partnership with India in 2004. He is with India in terrorism, nuclear activities, and the civilian space program.
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