India and the UK are set to revive free trade agreement (FTA) talks as UK Foreign Secretary David Lammy prepares for his visit to India. This marks the first high-profile visit under the newly elected Labour government. Lammy emphasized his commitment to concluding the deal swiftly during his address at the India Global Forum (IGF) in London.

The FTA negotiations began in January 2022 under the Conservative government, aiming to enhance the GBP 38.1 billion annual bilateral trading partnership. However, discussions stalled during the fourteenth round due to general elections in both countries. With the new parameters of the FTA to be outlined this week, India is keen to understand whether the Labour government will continue from where talks left off or start anew.

A source in New Delhi indicated that India seeks clarity on the Labour government’s approach to the FTA. “We want to see if the Labour government wants to continue from where we left in March or start from scratch. Our stance on visas for professionals remains unchanged, and we expect a positive outcome,” the source stated.

Lammy reiterated his readiness to finalize the trade deal, expressing regret over the missed Diwali 2022 deadline by the former prime minister. He underscored Labour’s intent to establish a strategic partnership with India, focusing on security, education, technology, and climate change.

High Commissioner Vikram Doraiswami clarified that visas are not a priority for India in the FTA. Instead, India aims to enhance goods and services trade under the General Agreement on Trade in Services (GATS). Lammy’s visit to India, en route to the ASEAN Foreign Ministers’ Meeting, is expected to set the stage for realizing this strategic partnership.

Source: Money Control