Abstract

This paper examines the significance of the ongoing India-UK Free Trade Agreement (FTA) negotiations in the context of their robust bilateral trade relationship, valued at £23.3 billion in 2019. Against a backdrop of shifting global trade dynamics from WTO-led multilateralism to Regional Trade Agreements (RTAs), exemplified by India's Trade and Economic Partnership Agreement (TEPA) with the EFTA, the proposed FTA aims to enhance trade and investment cooperation. The agreement has the potential to increase UK exports to India by £16.7 billion by 2035, fostering economic growth for both nations. However, this potential is tempered by concerns over national sovereignty, particularly regarding intellectual property rights, agricultural subsidies, and regulatory standards. The UK prioritizes maintaining high standards in environmental protection, labour rights, and food safety, and protecting the NHS from increased medication costs. For India, the FTA offers an opportunity to strengthen its global trade presence and attract foreign investments while safeguarding domestic industries and regulatory autonomy. This paper argues that the FTA's success hinges on meticulous negotiation to balance economic benefits with the preservation of national sovereignty and standards, shaping the future economic landscape of both countries and impacting global trade dynamics.

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