📦 India-UK FTA Likely to See Implementation Delay Due to UK Approval Process: Goyal
Commerce and Industry Minister Piyush Goyal has indicated that the much-anticipated India-UK Free Trade Agreement (FTA) may face implementation delays due to the United Kingdom’s internal approval mechanisms. While negotiations between the two countries have largely concluded, the UK's domestic procedures could extend the timeline.
“The FTA text is largely agreed upon, but the UK has a detailed and layered approval process that might push implementation beyond the expected window,” said Goyal during a recent interaction.
🔍 Background on the India-UK FTA
The India-UK FTA, under negotiation since 2021, is seen as a crucial step in boosting bilateral trade, which currently stands at over USD 20 billion annually. It aims to eliminate tariffs, reduce trade barriers, and facilitate services, investments, and intellectual property flows between the two economies.
🧭 Key Highlights
✅ Negotiations near completion: All major chapters of the deal have been negotiated.
❗ UK approval pending: Final agreement awaits clearance from UK’s legal and parliamentary procedures.
📅 Expected timeline shift: Initially expected to be signed by mid-2025, the deal may now push into late 2025 or early 2026.
📈 Bilateral impact: Once implemented, the FTA is projected to double India-UK trade by 2030.
🏛️ Why the Delay?
According to Goyal, the UK's multi-layered governance structure requires clearance from:
Legal vetting teams
Parliamentary scrutiny committees
Ministerial departments, including trade, treasury, and foreign affairs
These internal procedures, while standard in the UK, are causing the finalization timeline to stretch beyond initial estimates.
🔄 India's Stand on FTA Implementation
India has completed its internal procedures, and Goyal emphasized that New Delhi remains committed to concluding the deal at the earliest once the UK is ready.
“India stands ready. The ball is now in the UK’s court,” said Goyal.
🧠 Expert Insights
Trade analysts believe that the delay, though unfortunate, is not unexpected given the political and bureaucratic complexities of international trade agreements. However, they stress that both countries remain eager to finalize the deal.
❓ FAQ Section
Q1. What is the current status of the India-UK FTA?
The negotiations are substantially complete. However, the agreement is awaiting final UK approval.
Q2. Why is the UK delaying the FTA implementation?
The UK must complete legal and parliamentary procedures, which include multiple layers of internal approval.
Q3. Will the FTA still be signed in 2025?
While there is hope, a delay to late 2025 or early 2026 is now more likely, according to Commerce Minister Piyush Goyal.
Q4. What sectors will benefit most from the India-UK FTA?
Key sectors include textiles, IT services, pharmaceuticals, automotive components, and education.
Q5. Is the delay likely to affect trade between India and the UK?
Short-term trade may remain unaffected, but businesses awaiting tariff reductions or regulatory ease will need to wait longer.
📌 Conclusion
While the India-UK FTA represents a landmark opportunity for enhanced trade and diplomatic ties, the UK’s internal processes appear to be a stumbling block to timely implementation. With India ready and waiting, all eyes are now on the UK Parliament’s timeline.
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Reported by Benny on June 19, 2025.