For assessing effectiveness of the pact, it would be worthwhile to see if India’s share in UK’s imports & UK’s share in India’s exports see a material pick-up over time.
FTA, India’s first bilateral trade deal with a Western nation, will see tariffs on whisky-gin from UK halved to 75 percent. Automobile tariffs will be cut to 10 percent with a quota.
Ursula von der Leyen is on a 2-day visit to Delhi that will set a strategic agenda for India-EU ties. Visit comes at a time of churn in global geopolitics & US pulling away from Europe.
Negotiations were put on hold last year as both countries held general elections. For British PM Keir Starmer, a deal with India is part of his plan to revive the UK economy.
Malé has been facing a liquidity crisis. Last year, India rolled over $100 mn worth of loans, while offering roughly $750 mn in currency swap lines to support neighbouring country.
Paulo Rangel, on first official visit to India, emphasises that ties in the world will become 'transactional' in the next few years with incoming Trump administration in US.
Even after nine rounds of negotiations since 2022, the two sides are grappling with ‘fundamental differences’. For India, EU labour laws & environmental norms have become barriers.
The concern is not that 2025’s rally was irrational, but that it may be difficult to repeat. Outlooks remain anchored to AI investment and growth without reigniting inflation.
If deal goes through, Greece will be 2nd foreign country to procure vehicle. Morocco was first; TATA Group has set up manufacturing unit there with minimum 30 percent indigenous content.
Many of you might think I got something so wrong in National Interest pieces written this year. I might disagree! But some deserve a Mea Culpa. I’d deal with the most recent this week.
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