India and the United Kingdom are set to resume negotiations for a proposed Free Trade Agreement (FTA) in early February 2025, as confirmed by a commerce department official. The talks, which initially began in January 2022, aim to deepen trade ties between the two nations and foster economic collaboration.
Simultaneously, efforts are underway to revise the India-ASEAN FTA, with the next round of discussions scheduled to start in Indonesia on February 10. The talks will concentrate on resolving lingering issues related to goods trade, according to Rajesh Agrawal, Additional Commerce Secretary.
Progress is also being made on the India-Eurasian Economic Union (EAEU) FTA. The commerce department announced that the terms of reference for the agreement are nearing finalization. The EAEU includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, presenting significant trade opportunities for India.
In an innovative move to enhance trade insights, the Indian government is developing an AI-powered data analytics platform. Highlighting its capability to assess export trends and resilience, providing critical insights for decision-making, Sunil Barthwal, Commerce Secretary Barthwal notes, whether there is consistency in our growth or not, these kinds of insights are now coming.
To address discrepancies in trade data, a joint committee of commerce and finance ministry officials has been formed. This follows prior errors in gold import calculations, prompting the creation of a mechanism for publishing accurate and consistent trade data.
Meanwhile, the Department for Promotion of Industry and Internal Trade (DPIIT) is pursuing foreign direct investment (FDI) reforms. Consultations have been held with private equity firms, venture capitalists, and pension funds to reverse declining FDI inflows, which have averaged $70 billion annually over the past five years. The government is targeting $100 billion in annual FDI inflows over the next five years by streamlining policies and making India a more attractive investment destination.
Earlier, the DPIIT engaged with industry associations and legal experts to gather feedback on the FDI framework, underscoring its commitment to fostering a robust investment environment.
