Archive · 23 Jul 2025
Congress Questions India-UK FTA's Impact on Domestic Industry
India is signing a trade deal with the UK, but some people in Congress are worried.
They think it might hurt local businesses because the UK will be able to sell goods and services to the Indian government.
Also, the deal might lower taxes on cars coming from the UK, which could hurt Indian car makers.
Furthermore, new rules about patents could make it harder to get affordable medicines.
Finally, India did not get an exception to UK's carbon tax, which means Indian products might be taxed.
They believe these changes will hurt India's domestic industries.
Congress raises concerns about the impact of the India-UK Free Trade Agreement (FTA) on domestic industries.
The FTA may allow British firms to participate in procurement of goods and services of non-sensitive central government entities.
India has agreed to reduce car import duties from 100% to 10%, potentially hurting the 'Make in India' initiative.
New patent rules beyond the WTO's agreement are agreed upon, raising concerns over affordable medicine access.
India failed to secure an exemption from the Carbon Border Adjustment Mechanism (CBAM), potentially leading to carbon taxes.
- Who
- Congress and Prime Minister Narendra Modi.
- What
- India-UK Free Trade Agreement (FTA) is expected to be signed.
- When
- During Prime Minister Narendra Modi's visit to the UK.
- Where
- The UK.
- Why
- Concerns raised by Congress about the impact on India's domestic industry.
Congress Concerns
Government's Stance
Impact of FTA
Congress Concerns
FTA might harm domestic industries.
Government's Stance
FTA is expected to benefit 99% of Indian exports.
Car Import Duties
Congress Concerns
Lowering car import duties will undermine 'Make in India' initiative.
Government's Stance
FTA will enhance economic partnership.
Patent Rules
Congress Concerns
New patent rules will affect affordable medicines.
Government's Stance
FTA aims to foster prosperity and growth.
- Agreement
- India-UK Free Trade Agreement (FTA)
- Main Concern
- Impact on domestic industries
- Government Procurement
- UK firms may participate in procurement
- Car Import Duty
- Reduced from 100% to 10%
- Patent Rules
- New rules beyond WTO's agreement
- CBAM Exemption
- India did not secure exemption