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In January 2025, the negotiations for the India-UK Free Trade Agreement (FTA) entered their 14th round, with both nations aiming to finalize the deal by mid-2025. This agreement is expected to enhance bilateral trade, which currently stands at $40 billion annually, and deepen cooperation in key sectors like technology, renewable energy, and pharmaceuticals.

The FTA holds immense potential for both economies. For India, the agreement could provide greater access to the UK market for its textiles, IT services, and agricultural products. Conversely, the UK seeks reduced tariffs on Scotch whisky, automobiles, and high-end machinery. However, negotiations have been slowed by disagreements over labour mobility, rules of origin, and data protection standards.

One of the most contentious issues is the demand for liberalized visa norms for Indian professionals. The UK, facing domestic pressure to control immigration post-Brexit, remains cautious on this front. On the other hand, India is pushing for favourable terms to address its growing skilled labour exports.

The FTA is also viewed through a geopolitical lens. For the UK, securing trade ties with India is a cornerstone of its "Global Britain" strategy, aimed at strengthening relationships beyond Europe post-Brexit. For India, this agreement aligns with its vision of economic expansion and strategic autonomy in the global arena.

Observers note that the success of the FTA will hinge on political will and mutual compromise. The agreement's finalization could set a precedent for future trade pacts between emerging and developed economies.

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Solution

Instruction

1

What is the current annual bilateral trade between India and the UK?

A

$20 billion

B

$30 billion

C

$40 billion

D

$50 billion

E

Answer

C

2

Which sector is India expected to gain better access to in the UK market under the FTA?

A

Automobiles

B

Textiles

C

Scotch whisky

D

High-end machinery

E

Answer

B

3

What is a major point of contention in the India-UK FTA negotiations?

A

Renewable energy collaboration

B

Visa norms for Indian professionals

C

Reduction of agricultural subsidies

D

Tariffs on technology products

E

Answer

B

4

What is the UK's primary strategy for strengthening ties post-Brexit called?

A

Global Britain

B

Brexit Boost

C

International Trade Plan

D

Strategic Britain

E

Answer

A

5

What is India seeking in the negotiations to address its skilled labor exports?

A

Reduced tariffs on Scotch whisky

B

Favourable visa terms

C

Increased investment in agriculture

D

Relaxation of environmental standards

E

Answer

B

6

Which sector is the UK particularly interested in reducing tariffs on?

A

Pharmaceuticals

B

Agricultural products

C

Automobiles

D

Textiles

E

Answer

C