India and the United Kingdom are looking to finalise trade agreements in areas like pharmaceuticals, fintech, chemicals, defence manufacturing, petroleum and food products by 2021, even as the two countries are keen on early harvest deals while continuing negotiations for a comprehensive free trade agreement (FTA) post-Brexit, officials said.
India and the UK have a shared commitment towards a free trade agreement, but such negotiations are complex and could take longer. Meanwhile, the early harvest proposition will help the two partners grab the low-hanging fruits within the framework of a comprehensive trade agreement, media reports stated.
While some key trade deals are expected by 2021, a comprehensive trade deal between India and UK is expected in two-three years, sources said.
Experts stated that the trade relations between the two countries have severely stagnated during the last decade, but with Britain leaving the European Union the situation is set to change.
India’s main exports to the UK are articles of apparel and clothing accessories, power generating machinery and equipment, petroleum, petroleum products and related materials, miscellaneous manufactured articles, textile yarn, fabrics, footwear, medicinal and pharmaceutical products, road vehicles and other transport equipment.
The main imports from the UK to India are power generating machinery and equipment, non-ferrous metals, ferrous ores and metal scrap, general industrial machinery and equipment and machine, transport equipment, beverages, electrical machinery and appliances and electrical parts, professional, scientific and controlling instruments and appliances, chemicals.