India-UK FTA Talks Post-General Elections, Carbon Tax Discussions with EU Progressing

Trade issues between India and the UK will be addressed post-UK general elections, according to a senior government official. Important sectors impacted include electric vehicles and alcoholic beverages. Additionally, India-EU trade negotiations continue, focusing on the upcoming carbon tax. Discussions with Oman on the FTA and petrochemical duties are also ongoing.

Trade issues concerning the proposed Free Trade Agreement (FTA) between India and the UK will be addressed after the UK's general elections, a senior official from the Indian government announced on Friday. Crucial sectors impacted include electric vehicles, alcoholic beverages, and services.

"The unresolved issues to finalize the deal will be tackled once the general elections in the UK conclude," said L Satya Srinivas, Additional Secretary in the Department of Commerce.

India and the UK started FTA talks in January 2022 aiming to enhance economic ties. The agreement contains 26 chapters on goods, services, investments, and intellectual property rights.

The bilateral trade between India and the UK grew to USD 21.34 billion in 2023-24 from USD 20.36 billion in 2022-23. Meanwhile, India and the EU are preparing for their eighth round of trade talks from June 24-28 in Brussels, with the EU showing increased receptivity to India's concerns, particularly in light of the forthcoming carbon tax set to commence on January 1, 2026.

Separately, discussions on the India-Oman FTA are nearing conclusion, with key reservations on petrochemical duties being addressed. Oman, the third-largest export destination among GCC countries, is seeking duty concessions on key petrochemical products like polypropylene and polyethylene.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)