Ethics Theory, TLP-UPSC Mains Answer Writing
Q. 1. The India–UK Free Trade Agreement marks a new chapter in post-Brexit strategic realignment.” Analyze the significance of this deal for both nations. (150 words, 10 marks)
Introduction
The proposed India–UK Free Trade Agreement (FTA) represents a pivotal step in redefining bilateral ties post-Brexit. It seeks to deepen economic, strategic, and geopolitical cooperation, moving the relationship from symbolism to substantive mutual gains.
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Major Features of the Proposed Deal
- Tariff reduction: slashes duties on priority goods such as automobiles, Scotch whisky, textiles, and pharmaceuticals.
- Easing of services trade: opens up financial, legal, and digital services to enhance business linkages.
- Mobility and work visa commitments: enables smoother professional and student movement aligned with demographic needs.
- Sustainability and labour standards: mandates chapters on environment, labour rights, and gender equity to ensure ethical trade.
- Investment protection mechanisms: institutes dispute resolution frameworks to foster investor confidence and robust economic ties.
Significance for India: Economic and Strategic Gains
- Boost to exports and services trade: India can access tariff concessions in key sectors. Example: Textiles and IT — core components of India’s $14.5 billion exports to the UK in 2024–25 — will benefit from reduced barriers.
- Attracting investment and technology: UK’s strengths in fintech and green tech complement India’s developmental ambitions. Example: With UK FDI in India now above $34 billion, the FTA is poised to increase capital in renewables and digital infrastructure.
- Strategic balancing in the Indo-Pacific: strengthens India’s global posture amid rising regional tensions. Example: Closer coordination in Indo-Pacific summits and naval exercises reflects this deeper alignment.
Significance for the UK: Post-Brexit Outreach and Diversification
- Expanding non-EU trade portfolio: India’s rising 2024–25 trade volume of $21.34 billion aids diversification. Example: Reduced tariffs promise growth in UK exports of vehicles, whisky, and legal services.
- Access to skilled workforce: India’s STEM talent can help fill gaps in the UK economy. Example: Recent student-friendly measures aim to reverse a 40% decline in Indian students due to visa restrictions.
- Geopolitical partnership in the Global South: improves the UK’s standing in multilateral forums. Example: Joint advocacy at WTO and during climate negotiations reflects shared global agendas.
Mutual Gains: Deepening the Strategic and Cultural Connect
- Sustainable development and climate action: both nations aim to co-lead on renewable energy and climate finance. Example: UK support via Climate Finance Leadership Initiative aids India’s solar and infrastructure targets.
- Cultural and educational collaboration: the Indian diaspora and student mobility strengthen bonds. Example: With nearly 99,000 Indian students in the UK in 2025, the deal supports further academic integration.
- Global institution reform and multilateralism: shared commitment to a rules-based international order. Example: Cooperative announcements at recent UNSC and WTO forums underline this alignment.
Challenges and Considerations
- Sticking points in negotiation: unresolved areas include agriculture, IP rights, and rules of origin, slowing progress.
- Visa and immigration friction: domestic UK politics continues to complicate mobility clauses.
- Regulatory divergence and data norms: aligning on digital trade remains a core challenge. Way Forward
- Prioritise a balanced FTA: adopt a phased, sector-specific approach to balance sensitivities and opportunities.
- Enhance institutional frameworks: set up dedicated dialogues and regulatory committees for implementation.
- Invest in people-to-people ties: boost cultural, student, and tourism exchanges to deepen engagement.
- Leverage technology cooperation: partner on emerging tech in fintech, cybersecurity, and green innovation.
Conclusion
The India–UK FTA is more than a trade deal—it’s a strategic alignment of two democracies recalibrating in a post-Brexit world. If implemented well, it could significantly reshape bilateral and global cooperation.
