Archive · 23 Jul 2025
India-UK FTA Faces Scrutiny: Congress Questions Impact on Business
India and the UK are making a trade deal, but some people are worried.
This deal might let UK companies sell goods and services to the Indian government, which could hurt local businesses.
Also, India agreed to lower taxes on cars from the UK, which might make it harder for Indian car companies to succeed.
The deal also changes rules about patents, which could make it tougher to get cheap medicines in India.
Some politicians think these changes could be bad for Indian companies and people.
India-UK Free Trade Agreement (FTA) is set to be signed during PM Modi's UK visit.
Congress leader Jairam Ramesh raises concerns about the FTA's impact on Indian businesses.
The FTA allows UK firms to participate in Indian government procurement, potentially affecting local enterprises.
India has agreed to reduce car import duties from 100% to 10%, raising concerns about the 'Make in India' initiative.
The agreement includes stricter patent rules that may impact access to affordable medicines.
- Who
- Indian Congress leader Jairam Ramesh and PM Modi are key figures.
- What
- India and the UK are set to sign a Free Trade Agreement.
- When
- The FTA is likely to be signed during PM Modi's visit to the UK this week.
- Where
- The agreement involves India and the United Kingdom.
- Why
- Concerns have been raised regarding the impact of the FTA on Indian businesses and industries.
Congress Concerns
Government Stance (Not explicitly stated)
Impact on Industrial Policy
Congress Concerns
The FTA could undermine India's industrial policy.
Government Stance (Not explicitly stated)
Not explicitly stated.
Car Import Duty
Congress Concerns
Reducing car import duties harms the 'Make in India' narrative.
Government Stance (Not explicitly stated)
Not explicitly stated.
Patent Rules
Congress Concerns
Stricter patent rules could impact access to affordable medicines.
Government Stance (Not explicitly stated)
Not explicitly stated.
- Agreement
- India-UK Free Trade Agreement
- Negotiation Length
- Nearly three years
- Main Concern
- Impact on Indian businesses
- Key Industries Affected
- MSMEs, automobile, and pharmaceutical
- Car Import Duty Reduction
- From 100% to 10%
- Patent Rules
- Stricter than WTO requirements