The impact of the resignation of British Prime Minister Liz Truss on India’s business
India-UK trade deal lost amid political turmoil
Both the countries had to benefit tremendously from this trade agreement.
New Delhi. There is a ruckus in British politics. After resigning, Liz Truss has become the Prime Minister to hold the shortest term. He took a U-turn in finance policy, due to which there was an outcry in the global market and the ministers had to resign. Due to this, the demand for removal of Truss from the post started within the Conservative Party.
The Conservative Party currently has such a majority that it does not need to hold general elections for two years. Their new leader will be elected on October 28. He will be the fifth prime minister of Britain in six years. In these conditions of British politics, it is believed that Rishi Sunak, former Finance Minister of Indian origin, will be elected in place of Penny Mordont. However, there is also discussion that there may be a return of Boris Johnson, who was removed from the post in July itself.
questions arising in india
This development not only shows how much 10 Downing Street and the politics of Britain have changed since Brexit, but it is having a direct impact on India. Questions are being raised in India as to what will happen to the Free Trade Agreement (FTA) between the two. India and Britain had formal talks in January this year regarding FTA. In this, bilateral trade and investment of $100 billion by 2030 were discussed. With this agreement, both the countries would have either abolished the custom duty or reduced it so that trade becomes easy. In this, the rules regarding investment and other things were also to be relaxed.
India-UK trade figures
According to official figures, the bilateral trade between India and the UK is worth $ 16 billion in the year 2021-22, while it was $ 13..11 billion in the year 2020-21. In this way it increased by 22.17 percent. In the year 2021-22, exports of $ 9.43 billion were made between the two countries, while imports were $ 6.59 billion. In this way, the market remained balanced due to business of $ 2.84 billion in the year 2021-22. Trade between the two countries was $ 15.45 billion in the year 2019-20, $ 16.87 billion in 2018-19 and $ 14.49 billion in the year 2017-18.
Some highlights of the deal
- India becomes UK’s 15th largest trading partner in 2021
- UK becomes India’s 18th largest trading partner in 2021
- India supplies many items including readymade garments, jewelery and spices to the UK.
- Both the countries were to sign the FTA this Diwali i.e. on 24 October.
- Deal still going on in India and UK
- India wants to do something about import duty on British whiskey
- UK should give more visas to Indian students and businessmen
- Britain’s Home Secretary Suella Braverman’s statement threatens the deal
- Home Secretary talked about taking action on Indians living after visa period
- India had expressed displeasure and regret over this statement.
Tags: Britain, World news
FIRST PUBLISHED : October 21, 2022, 17:59 IST