NEW DELHI: As Prime Minister Narendra Modi prepares to depart for London, India and the United Kingdom are on the verge of signing a landmark Free Trade Agreement (FTA). Foreign Secretary Vikram Misri has indicated that the deal is undergoing “last-minute work,” including legal scrubbing, signaling the final stages of negotiation.
The announcement comes as discussions are likely between Modi and his UK counterpart, Keir Starmer, on pressing global issues such as the Russia-Ukraine conflict. The West’s renewed attempts to pressure Russia into negotiations through sanctions could potentially affect India’s trade relations with Moscow. Misri emphasized India’s stance against double standards in energy trade, highlighting the need for a balanced approach.
Key Elements of the FTA
While neither side has officially confirmed the signing, both parties appear confident that the FTA will be formalized during Modi’s brief visit. The agreement is expected to enhance cooperation in several areas, including trade, defense, technology, education, and people-to-people exchanges. Additionally, India plans to address concerns related to Khalistani extremism and push for the return of economic fugitives.
The UK views the sanctions on Russia as a measure to curb President Vladimir Putin’s military ambitions, not as a punitive action against countries like India. Misri acknowledged that India has not yet encountered any actions by the UK regarding proposed secondary sanctions.
Energy Security and Global Implications
Speaking on the European Union’s latest sanctions, Misri reiterated that India’s energy security remains a “highest priority” for the government. He stressed the importance of avoiding double standards and maintaining a “clear-eyed perception” of the global energy market.
“We do understand that there is an important and serious security issue confronting Europe, but the rest of the world is also dealing with existential issues,” Misri stated, emphasizing the need for balance and perspective.
Modi’s talks with Starmer on July 24 are expected to culminate in the formal signing of the FTA. The visit will also include meetings with business leaders from both nations, underscoring the economic significance of the agreement.
Diplomatic and Economic Context
For the UK, this is an official visit aimed at delivering substantial policy outcomes rather than a ceremonial state visit. However, Modi is anticipated to receive personal hospitality from both Starmer and King Charles III.
Misri addressed concerns regarding the extradition of Indian fugitives, clarifying that the state of Indian prisons is not a hindrance. He cited the recent extradition of Tahawwur Rana as evidence that such issues can be resolved.
Historical Parallels and Expert Opinions
The potential signing of the FTA marks a significant milestone in India-UK relations, reminiscent of past trade agreements that have reshaped bilateral ties. Experts suggest that this agreement could serve as a model for future FTAs, particularly in the post-Brexit era.
According to trade analyst Dr. Anjali Rao, “This FTA could redefine economic relations between India and the UK, offering new opportunities for growth and collaboration.”
Looking Ahead
The move represents a strategic alignment between India and the UK, with implications for global trade dynamics. As both nations navigate complex geopolitical landscapes, the FTA could pave the way for deeper economic integration and mutual prosperity.
As the world watches, the formalization of this agreement could set a precedent for future trade negotiations, influencing global economic policies and partnerships.
