"We will work together to further strengthen our Comprehensive Strategic Partnership. We also agreed on the importance of early conclusion of a comprehensive and balanced FTA," PM Modi said.
New Delhi: Prime Minister Narendra Modi has spoken to the new Prime Minister of Britain, Rishi Sunak. The Prime Minister gave this information in one of his tweets. He said “It is a pleasure to talk to Rishi Sunak. Congratulations to him on taking over as the Prime Minister of Britain. We will work together to further strengthen our comprehensive strategic partnership. We also agreed on the importance of early conclusion of a comprehensive and balanced FTA."
The foundation of the Free Trade Agreement between India and Britain was laid by former Prime Minister Boris Johnson during his visit to India. During his visit, Johnson approved and negotiated the FTA. After this, Truss, who became Prime Minister for only a few days, had also welcomed Johnson's move and said that he was willing to go ahead with the talks on FTA with India. As the Minister of Foreign Affairs and Trade of Truss, he emphasized on establishing better trade relations with India.
On the Free Trade Agreement between India and Britain, it was believed that talks could be finalized on the occasion of Diwali, but this could not be possible due to the sudden resignation of Truss. Now with Rishi Sunak taking over as the prime minister, it is believed that the much-awaited FTA may soon get approval. PM Modi has also told that he has also spoken to Sunak regarding FTA and both the leaders have also agreed on this.
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 and the talks are in the final stages. 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?
A free trade agreement or free trade agreement is an agreement between countries whereby barriers to trade such as customs duties and non-tariffs are reduced or eliminated. FTAs specifically agree on free and tariff less trade on issues such as trade in goods and services, intellectual property rights and investment.