India-UK FTA: The twin threats that could derail India’s $120 billion trade ambition

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India-UK FTA: The twin threats that could derail India’s $120 billion trade ambition - Economic Times

Quick Summary:

The India-UK FTA promises to boost economic cooperation, remove trade barriers, and increase investment and job creation.

According to a 2022 paper published in The Review of International Organisations, India experienced a significant reduction of over 30% in foreign direct investment (FDI) inflows after terminating its BITs.“We need to modify our BIT model to make it look good for partner countries,” says Srivastava.

The India-UK FTA promises to boost economic cooperation, remove trade barriers, and increase investment and job creation.iStockIn FY25, the total trade between both countries reached $21.33 billion; India’s exports to the UK increased by 13.3% over a year to $12.9 billion, while imports from the UK fell by 6.1% to $8.4 billion.