Archive · 23 Jul 2025
Congress Questions Impact of India-UK Trade Agreement
India and the UK are about to sign a trade deal, but a Congress leader is worried.
The deal might hurt Indian businesses, especially those making cars, medicines, and small businesses.
It allows UK companies to bid on government projects, which could reduce opportunities for local businesses.
Additionally, India has agreed to lower import taxes on cars from the UK and adopt stricter patent rules which may affect medicine costs.
The leader thinks these changes could make it harder for Indian companies to compete and make it difficult to access affordable medicine.
Prime Minister Modi is visiting the UK to finalize the deal and discuss broader topics.
India-UK Free Trade Agreement (FTA) is set to be signed during PM Modi's visit.
Congress leader Jairam Ramesh raises concerns about the FTA's impact on Indian businesses.
The FTA opens a $600 billion market to UK firms for government procurement.
India agreed to reduce car import duties and adopt stricter patent rules under the FTA.
PM Modi's visit to the UK includes talks on trade, defense, climate, and education.
- Who
- Indian government, UK government, and Congress leader Jairam Ramesh.
- What
- India-UK Free Trade Agreement (FTA) to be signed, raising concerns from Congress.
- When
- Finalized in May and set to be signed during PM Modi's visit this week.
- Where
- United Kingdom.
- Why
- To boost bilateral ties and facilitate trade, while concerns exist regarding the impact on Indian industries.
Criticisms of the Agreement
Support for the Agreement
Government Procurement
Criticisms of the Agreement
The FTA opens up a significant market to UK firms, potentially harming Indian businesses by allowing them to compete for government contracts.
Support for the Agreement
The agreement aims to boost bilateral ties and facilitate trade, opening new markets for both countries. Details are not mentioned in this article.
Car Import Duties
Criticisms of the Agreement
The reduction in car import duties undermines the 'Make in India' initiative and sets a precedent for similar concessions with other countries.
Support for the Agreement
The article does not mention other viewpoints, other than PM Modi supporting the agreement. Further details are not available in this article.
Patent Regulations
Criticisms of the Agreement
Adopting stricter patent rules than required by the WTO will restrict access to affordable medicines within India.
Support for the Agreement
The article does not mention other viewpoints, other than PM Modi supporting the agreement. Further details are not available in this article.
- Agreement
- India-UK Free Trade Agreement (FTA)
- Negotiation Period
- Nearly three years
- Government Procurement Market Size
- $600 billion
- Car Import Duty Reduction
- From 100% to 10%
- Patent Rules
- Stricter than WTO's TRIPS Agreement