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100% U.S. tariff threat: Can India’s new trade deals reduce its dependence on America?

admin — Mon, 21 Sep 2026 14:18:00 +0000

By Areena Arora and Gandla Sneha

Published September 21, 2026

Prime Minister Narendra Modi with U.S. President Donald Trump in New Delhi on Feb. 25, 2020. (PTI Photo)

As the Trump administration has repeatedly changed tariffs on Indian goods, New Delhi has been signing trade agreements at a rapid pace. But can these new markets meaningfully reduce India’s dependence on the U.S. as it’s faced with 100% tariffs?

How U.S. tariffs on Indian goods have changed since 2025

The U.S. House of Representatives has passed legislation giving U.S. President Donald Trump broad
powers to impose sanctions on Russia and tariffs of up to 100% on countries that buy Russian oil and
gas, a measure that could once again put Indian exports in the firing line.

The development comes after more than a year of upheaval in India-U.S. trade. Since Trump returned
to the White House, Indian exporters have faced repeated changes in tariff rates, the products
covered and the laws used to impose them. The uncertainty matters because the U.S. has only become
more important to India’s exporters. This bill comes amidst New Delhi and Washington negotiating a
preliminary trade deal.

The Trump administration had announced an additional 25% tariff, on top of an existing 25% tariff on
India in July 2025, for the purchase of Russian oil. The share of Russian crude oil in Indian oil
imports fell to its lowest level in two years in December 2025, but energy markets have been under
additional pressure owing to the U.S.-Iran conflict and New Delhi’s import of Russian oil hit an
11-month high in April this year. However, the U.S. Treasury paused sanctions for oil shipments that
were in transit before March 11, as supplies were hit following the start of the conflict in West
Asia on February 28.

Russia accounted for more than 51% of India’s oil imports in July, an all-time high, up from just a
little less than 50% in the previous month, the latest official data shows. An analysis of Commerce
and Industry Ministry data shows India imported 110.4 lakh tonnes of Russia oil in July, the latest
month for which data is available.

U.S. is India’s most important trading partner, as evident in its imports from India. In 2025, the
U.S. bought about $92 billion worth of Indian merchandise, almost four times the $24 billion it
bought in 2010. Its share of India’s merchandise exports nearly doubled over the period.

Even as the Trump administration has repeatedly turned to tariffs, New Delhi has been rapidly
expanding its network of trade agreements, opening up markets across Europe, West Asia and
elsewhere. But can these new markets meaningfully reduce India’s dependence on the U.S.?

How the U.S. tariff regime has been changing

India is not alone in facing U.S. tariffs. On April 2, 2025, the Trump administration announced a
10% additional tariff on imports from almost all trading partners, along with higher
country-specific rates for dozens of economies. India was assigned a 26% rate, while other major
trading partners including the European Union, Japan and South Korea were also placed above the 10%
baseline. The higher country-specific tariffs were suspended days later for most countries, leaving
the 10% baseline in place. China was treated separately and faced substantially higher rates during
the ensuing tariff dispute.

U.S. Section 301 tariffs, as of July 2026

Tariff rates vary by country. For some, the rate is an additional duty on top of existing tariffs, while for others it is a total rate that includes existing duties.

10% + existing tariff(additional duty)
12.5% + existing tariff(additional duty)
10% total(includes existing duties)
12.5% total(includes existing duties)
Not covered by this action

Loading tariff map…

In July 2025, the U.S. announced a 25% rate for India, which it then hiked to 50% as a penalty for
importing Russian oil. The additional Russian-oil tariff was removed in February 2026, when India
and the U.S. announced a framework for an interim trade agreement.

The tariff regime changed again in 2026. After the U.S. Supreme Court struck down the use of
emergency economic powers for the reciprocal tariffs, the administration turned to other provisions
of U.S. trade law. A temporary 10% import surcharge under Section 122 took effect on February 24 and
remained in force until July 24.

In July, the U.S. Trade Representative imposed new Section 301 tariffs on 60 economies following an
investigation into forced-labour import restrictions. The rates varied by country, from 10% for
India, the UK and several others to 12.5% for many of the economies covered.

Since July, around 55% of India’s exports to the U.S. have faced this additional 10% Section 301
duty. The remaining 45% are outside its scope, including generic pharmaceuticals, smartphones and
products already subject to separate Section 232 tariffs such as steel, aluminium and auto parts.

These repeated changes have made it difficult for exporters to plan around fluctuations in the U.S.
market, said Biswajit Dhar, an economist and former professor at Jawaharlal Nehru University.

“With regular changes in U.S. tariff rates, Indian exporters face serious uncertainties over their
expected earnings in the world’s largest economy,” he said.

Indian Liquified Petroleum Gas carrier Shivalik as it arrives at the Mundra Port in Gujarat, India. (REUTERS/Amith Dave)

Meanwhile, India’s dependence on the U.S. has grown

Over the years, the U.S. has accounted for a growing share of India’s exports. What Indian exporters
sell to American buyers has also changed.

Two decades ago, consumer goods made up more than half of India’s exports to the U.S., while capital
goods accounted for just 11.4%. By 2025, the share of consumer goods had fallen to 40.9%, while
capital goods had risen to 28.6%.

The composition within those broad categories has changed too. In 2005, precious stones accounted
for 24.7% of India’s exports to the U.S. and textiles and apparel for 21.3%. By 2025, their shares
had fallen to 7.3% and 8.3%, respectively.

Source: International Trade Center trade map. Shares are each product group’s value divided by total merchandise exports to the U.S. that year.

Electrical machinery moved in the opposite direction. It accounted for just 2.6% of India’s exports
to the U.S. in 2005, but by 2025 had become the largest category, making up 28% of the export
basket. Pharmaceuticals also increased from 1.6% to 10.4% over the period.

Some of these industries are also highly dependent on the U.S. as a destination. In 2025, 48.1% of
all electrical machinery exported by India went to the U.S. The corresponding share was 55% for
carpets and 37.3% for pharmaceuticals. For some smaller categories, the dependence was even greater.
The U.S. accounted for 77.3% of prepared meat and fish exports in 2025.

This makes changes in U.S. market access particularly important for Indian exporters. For several
industries, the U.S. accounts for a substantial share of their total overseas sales.

Union Minister of Electronics and Information Technology Ashwini Vaishnaw during the inauguration of a manufacturing unit for tempered glass used in mobile phones, in Noida, Uttar Pradesh, on Aug. 30, 2025. (PTI Photo)

India’s attempt at diversifying its trade partnerships

India has also accelerated its push for new trade agreements. Since 2021, India has concluded or
announced nine trade agreements covering 38 countries.

The Comprehensive Economic Partnership Agreement with the UAE came into force in 2022, followed by
the Economic Cooperation and Trade Agreement with Australia later that year. India signed an
agreement with the four-country European Free Trade Association in 2024. Deals with the UK and Oman
followed, while India has also concluded negotiations with the European Union and signed an
agreement with New Zealand.

These agreements offer Indian exporters significant tariff concessions. Under the agreement with the
UK, for instance, nearly 99% of Indian exports will receive zero-duty access. Oman has offered
duty-free access covering more than 99% of Indian exports by value. New Zealand has agreed to
eliminate tariffs across all tariff lines once the agreement comes into force.

Source: Trade Intelligence Analytics TIA Portal, Department of Commerce

From January 2026, Indian goods also received zero-duty access across all Australian tariff lines.

The agreement concluded with the EU is potentially the most significant because the size of the
European market comes closest to that of the U.S. The concessions negotiated cover more than 99% of
Indian exports by trade value, although the agreement is not yet in force.

Even as FTAs have expanded India’s access, the scale of these markets matters. India’s bilateral
trade with the UAE rose from about $43 billion in FY2021 to around $100 billion in FY2025. Trade
with Australia increased from roughly $12 billion to $24 billion over the same period.

This growth cannot be attributed entirely to trade agreements. Commodity prices, domestic demand,
exchange rates and wider economic conditions also affect bilateral trade. An FTA also does not
automatically redirect exports from one country to another. Exporters still have to find new buyers
and distribution networks. Products may also need to meet different regulatory and technical
standards. In some markets, non-tariff barriers may matter more than the tariff itself.

Trade with India’s FTA partners has grown

Pre-FTA reference level (FY2021)
FY2025 trade

Note: The chart compares trade before and after the FTA period. It does not imply
that the FTA caused the increase.

Source: Ministry of Commerce and Industry database

The EU illustrates both the opportunity and the limitation. It is the only market large enough to
approach the U.S. as an export destination for India, even as the U.S. remains the largest single
destination among the markets considered. India’s exports to the European bloc increased from about
$49.5 billion in 2017 to $78.5 billion in 2025. The EU accounted for about 17.6% of India’s
merchandise exports in 2025. Together, the U.S. and EU accounted for roughly 38% of India’s
merchandise exports that year.

The recently concluded trade agreement could substantially improve tariff access for Indian
products. But greater access does not guarantee that industries heavily dependent on American demand
will begin selling comparable quantities in Europe in the short term.

The same problem is more pronounced for smaller FTA partners. The UK is considerably smaller.
India’s exports to the country increased from about $9 billion in 2017 to $13.8 billion in 2025.
Australia also became more important, with exports rising from about $3.9 billion to $7.7 billion.
But it still accounted for only about 1.7% of India’s merchandise exports in 2025.

The UAE, UK and Australia can provide additional demand. But individually they remain far smaller
destinations for Indian merchandise than the U.S.

Diversifying away from the U.S. would be difficult in the short term, Dhar said. The U.S. is the
largest market for some of India’s most export-oriented industries, particularly mobile phones and
pharmaceuticals. Entering new markets would also take time and investment, especially for
pharmaceutical companies that need to establish their products and build demand, he said.

For sectors with high exposure to the U.S. market, it remains to be seen whether greater market
access through FTAs translates into more exports to these destinations.

Dhar pointed to China’s experience. Before Donald Trump began targeting China during his first term,
a much larger share of its exports went to the U.S.

“China saw the writing on the wall and began developing new markets for its exports,” Dhar said. By
the time Trump returned to the White House, that share had fallen substantially. “If India can
garner stronger political will, it could reduce its export dependence on the U.S. in a shorter time
span than China did.”

Data do not yet show India moving away from the American market. The U.S. share of Indian exports
has risen steadily, reaching more than one-fifth in 2025.

And the possibility of another major tariff shock has now moved closer.

The U.S. House of Representatives on Wednesday passed legislation giving Trump broad powers to
impose sanctions on Russia and tariffs of up to 100% on countries that buy Russian oil and gas.
India, one of the largest buyers of Russian crude since the invasion of Ukraine, could be affected
by the measure.

The legislation will now go to Trump to be signed into law. It does not mean a 100% tariff on Indian
goods automatically takes effect. Rather, it gives the President authority to impose tariffs of up
to that level on countries purchasing Russian energy.

For Indian exporters, the development adds another source of uncertainty around the market that has
become their most important overseas destination. India’s new trade agreements provide access to a
much wider set of markets. Whether those markets can reduce that dependence will ultimately depend
on whether Indian exports actually begin shifting towards them.

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99% of exports to become duty-free with India-U.K. trade treaty: Amit Shah

admin — Wed, 15 Jul 2026 12:40:00 +0000

Union Home Minister Amit Shah. File
| Photo Credit: ANI

Union Home Minister Amit Shah on Wednesday (July 15, 2026) said that the India-U.K. free trade agreement is set to unlock untapped potential across labour-intensive industries, offering zero-duty market access for 99% of the country’s exports.

The #IndiaUKFTA that comes into force today is the key to a Viksit Bharat as envisioned by Modi Ji. The treaty is set to unlock untapped potential across labour-intensive industries, offering zero-duty market access for 99% of Indian exports, including those in textiles, leather,… pic.twitter.com/6RycCzrFDW

— Amit Shah (@AmitShah) July 15, 2026

He said the agreement, which comes into force on Wednesday (July 15, 2026), is the key to a Viksit Bharat as envisioned by Prime Minister Narendra Modi.

“The treaty is set to unlock untapped potential across labour-intensive industries, offering zero-duty market access for 99% of Indian exports, including those in textiles, leather, engineering, food processing, pharmaceuticals and MSME,” Mr. Shah said on X.

He said the treaty stands as a testament to the Centre’s pro-people diplomacy.

The treaty will also extend significant exemptions to Indian professionals in the U.K., he said.

The Comprehensive Economic and Trade Agreement (CETA) that came into force on Wednesday (July 15, 2026) was signed between Prime Minister Narendra Modi and his U.K. counterpart Keir Starmer in July last year.

The pact is expected to at least double the trade between the two countries from the current annual levels of estimated 48 billion pounds by 2030, and boost their GDPs by nearly 5 billion pounds every year in the long run.

Published – July 15, 2026 06:09 pm IST

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India-U.K. DCC not applicable to Indians working in the U.K. before July 15

admin — Wed, 15 Jul 2026 11:33:00 +0000

Image used for representational purposes only.
| Photo Credit: Getty Images/iStockphoto

The India-U.K. Double Contributions Convention (DCC), allowing temporary Indian and British workers an exemption from paying social security contributions in their host countries for 60 months, is not retrospective, i.e., it will not apply to Indians already working in the U.K. and Britons working in India before July 15 2026.

The DCC came into effect on Wednesday (July 15, 2026) alongside the India-U.K. Comprehensive Economic and Trade Agreement (CETA). Normally, temporary foreign workers – called “detached workers” in the U.K. – are exempt from U.K. social security contributions known as National Insurance (NI) for the first 12 months. The India U.K. DCC has increased this exemption from 12 to 60 months for detached workers.

However, guidance issued by the U.K. clarifies that individuals already working in the U.K. immediately before Wednesday are not considered “detached workers” under the DCC and are hence subject to UK law on social security contributions.

NIC is paid by both the employee and employer, normally. The employee could pay up to 8% of gross salary generally and the employer up to 15% of gross salary as NI contributions.

“Employees from India sent to work temporarily in the U.K. by their Indian employer, who are already working in the UK immediately before 15 July 2026 (part way through 52 weeks of exemption from UK National Insurance contributions) will not be detached workers under the DCC,” guidance from His Majesty’s Revenue and Customs (HMRC) says.

“These employees will become subject to U.K. social security legislation from July 15 2026, and will be liable to pay U.K. National Insurance contributions,” says HMRC.

The DCC applies only to employees arriving in the U.K. on or after Wednesday (July 15, 2026) and who are not expected to remain in the U.K. for more than 60 months. These individuals are subject to India’s social security legislation (and not the U.K.’s ).

“The employees and their employers will not have to pay U.K. National Insurance contributions,” HMRC says. It adds that in these cases those seeking an exemption should get a “certificate of coverage” from India’s Employees’ Provident Fund Organisation (EPFO) as evidence that they are making social security contributions in India and are exempt from UK NI contributions.

The corresponding situation holds for Britons working in India.

Published – July 15, 2026 05:03 pm IST

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‘Most ambitious and aspirational FTAs’: India-U.K. trade deal set to come into force on July 15

admin — Tue, 14 Jul 2026 13:06:00 +0000

The India-U.K. Comprehensive Economic and Trade Agreement (CETA) and Double Contribution Convention (DCC) that are set to come into force on July 15 are a “gold standard” and one of the “most ambitious and aspirational free trade agreements” signed by India, Commerce Secretary Rajesh Agrawal said on Tuesday (July 14, 2026).

He added that the deals benefit India’s farmers, fisherfolk, workers and women entrepreneurs. The India-U.K. CETA and the DCC were signed in July last year.

“This is one of the first free trade agreements (FTAs) of its kind, which establishes a future-oriented economic architecture between two major economies of the world,” Mr. Agrawal said at a press briefing. “This is also one of the most ambitious and aspirational FTAs of India, which we are operationalising as till date.”

Deal dynamics

“It is a gold standard and the first of its kind because of its wide sectoral coverage and deep reduction in both tariff and non tariff barriers,” he added.

Under the deal, the U.K. will immediately eliminate tariffs on 96.8% of its tariff lines, accounting for 97.7% of the trade value. An additional 2% of tariff lines, amounting to 1.8% of trade value, will see reduced tariffs based on quotas. In total, this covers 98.8% of tariff lines and 99.5% of trade value.

India, on the other hand, will immediately eliminate tariffs on 30.3% of the trade value, with 47% more seeing tariffs eliminated in a phased manner. It will also provide reduced quota-based tariffs on 12.1% of the trade value. In total, this would cover 89.5% of tariff lines and 89.4% of trade value.

Wide-ranging impact

Officials in the U.K. have also welcomed the deal, highlighting a multi-sectoral impact.

“For the City of London, the agreement provides a strong platform to unlock even greater collaboration in financial and professional services, insurance, fintech, sustainable finance and infrastructure investment,” Chris Hayward, Policy Chairman, of the City of London Corporation told The Hindu.

“As India continues its remarkable economic growth story, London stands ready to support the mobilisation of global capital and expertise needed to help deliver those goals,” he added.

Mr. Agrawal said that the thirty chapters across which negotiations have taken place under this agreement extend beyond conventional tariff liberalisation to cover digital trade, government procurement, SMEs, innovation, labour, environment, and gender.

He added that the deal addresses non-tariff barriers as well, so that issues like Sanitary and Phytosanitary Measures (SPS) and Technical Barriers to Trade (TBT) “do not become unjustified trade restrictions for our businesses in the future”.

Sensitivities protected, labour benefited

The Secretary further explained that the deal protects India’s sensitive sectors such as dairy, cereals, pulses, vegetables, gold and jewellery, smartphones, and critical polymers.

On the DCC, he said that the agreement was a “gamechanger” for India’s services sector and skilled workforce.

“Indian employees and their employers contribute around 25% of their salary to the U.K.’s national insurance system,” Mr. Agrawal explained. “Their contribution is like a tax of 25% as employees are unable to draw benefits. These are like sunk costs.”

He said that the DCC will ensure that workers will not need to pay double contributions towards their social security. That is, if they are paying social security in India, then they will not have to pay it in the U.K. as well for a period of five years.

According to Mr. Agrawal, this will benefit over 75,000 Indian workers and over 900 employers.

(With inputs from Sriram Lakshman in London)

Published – July 14, 2026 06:25 pm IST

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India & U.K. overcome last-minute steel hurdle, announce July 15 as trade deal implementation date

admin — Wed, 17 Jun 2026 16:04:00 +0000

British Prime Minister Keir Starmer speaks with Prime Minister Narendra Modi as they arrive for a working session with G7 leaders and outreach partners on promoting economic growth during the G7 Summit in Evian-les-Bains, France, onJune 17, 2026.
| Photo Credit: Reuters

India and the United Kingdom have overcome last-minute differences over steel import duties to finally announce July 15 as the implementation date for the trade deal between the two countries, the two governments announced on Wednesday (June 17, 2026).

The Comprehensive Economic and Trade Agreement (CETA) was signed by the two countries in July 2025 and was all set to be implemented by April or early May 2026.

However, a fresh regulation by the U.K. announced in May and applicable to all countries cut the quota for duty-free steel imports by 60% and doubled the tariff on above-quota imports to 50%. These new rules are to come into effect from July 1, 2026.

These tariffs and quotas were not part of the trade deal negotiations and suddenly halted the implementation process. According to Commerce Secretary Rajesh Agrawal, a team from India has been in the U.K. over the last few days to move things along.

“Delighted to note that the India-UK Comprehensive Economic and Trade Agreement will enter into force on 15th July 2026,” Prime Minister Narendra Modi posted on X following the announcement. “This agreement will significantly boost our bilateral trade and investment.”

The implementation of the trade deal, under which the U.K. will remove tariffs on 99% of its product lines, will be accompanied by the implementation of the Agreement on Social Security, also referred to as the Double Contribution Convention (DCC), on July 15.

Through the DCC, India is set to secure several mobility and competitive concessions for Indian professionals in the United Kingdom.

“Demonstrating the collaborative strength of the India-UK Comprehensive Economic Partnership Agreement (CETA), India and the United Kingdom have successfully reached a landmark consensus to safeguard and promote bilateral steel trade,” the Ministry of Commerce and Industry said in a release.

Without revealing details on what exactly the solution to the UK steel tariff issue would entail, the release added that “both sides mutually agreed to protect commercial interests, minimise market disruptions, and ensure an overall balanced and stable trading environment for exporters”.

It further said that such protections would be through a mix of country-specific quotas, residual quotas and access under an Authorised Use Scheme (AUS).

Published – June 17, 2026 09:32 pm IST

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India-U.K. trade deal hits late-stage ‘sticking points’ just before implementation date

admin — Fri, 15 May 2026 11:09:00 +0000

Earlier in the year, Commerce Minister Piyush Goyal had expressed his confidence that the CETA, signed in July 2025, would be implemented in May 2026. Photo: DPR PMO/ANI Photo

The implementation of the India-U.K. trade deal has hit a late-stage hiccup due to a new regulation on steel imports the U.K. has said it will implement from July 1, which was not part of the trade negotiations.

The India-U.K. Comprehensive Economic and Trade Agreement (CETA) was expected to come into force in May 2026, but now the two sides are trying to work out a “creative solution” to ensure the deal is implemented “at an early date”, Commerce Secretary Rajesh Agrawal told reporters on Friday (May 15, 2026).

Also read: What does the new U.K.-India trade deal entail? | Explained

The U.K., as part of its overall Steel Strategy, earlier this month announced that from July 1 onwards it will significantly reduce the volume of steel that can be imported into the country tariff‑free.

“Overall quota volumes will be cut by approximately 60% compared to the current safeguard arrangements,” the U.K. government said. “Once the reduced quotas are exhausted, imports will be subject to a 50% tariff, an increase from the current 25% above‑quota tariff.”

That is, the quota for duty-free steel imports would be cut by 60% and the tariff on above-quote imports would be doubled to 50%.

“We are very near to operationalising the India-UK FTA,” Mr. Agrawal said. “There are a few sticking points. The U.K. has come ahead with a steel measure recently which was not factored in while negotiating the India-U.K. FTA. We are working together to find a creative solution around this trade measure also so we can operationalise the India-U.K. CETA at an early date.”

Earlier in the year, Commerce Minister Piyush Goyal had expressed his confidence that the CETA, signed in July 2025, would be implemented in May 2026.

Published – May 15, 2026 04:31 pm IST

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India, U.K. need to simplify their regulatory mechanisms: London’s Lady Mayor

admin — Wed, 29 Apr 2026 07:26:00 +0000

London Mayor Dame Susan Langley.
| Photo Credit: Aditya Shirsekar

“India and the United Kingdom need to simplify their complex regulatory mechanisms,” London’s Lady Mayor Dame Susan Langley told The Hindu.

The comments are significant on the background of the India-U.K. Free Trade Agreement (FTA) which will be effective soon. During her maiden visit to India, the international Ambassador for the U.K.’s financial and professional services sector, emphasised on the need for both the countries to understand each other’s markets more strategically, and discussed the barriers for the rolling out of the FTA.

Published – April 29, 2026 12:56 pm IST

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India-UK FTA to stimulate innovation, ease market access, foster investment, says Sunil Bharti Mittal

admin — Fri, 25 Jul 2025 04:53:00 +0000

Prime Minister Narendra Modi shakes hands with his British counterpart Keir Starmer after Britain’s Secretary of State for Business and Trade, Jonathan Reynolds and Union Minister Piyush Goyal signed a free trade agreement, at Chequers Estate, in U.K.. (X/@narendramodi)

The India-UK Free Trade Agreement (FTA) signed on Thursday (July 25, 2025) establishes a modern, forward-looking partnership that would stimulate innovation, ease market access, and foster investment, Sunil Bharti Mittal, Founder & Chairman of Bharti Enterprises and Co-Chair of the India-UK CEO Forum. And the leader of the business delegation from India said.

“Businesses in India as well as the UK stand to gain tremendously, as it lays the groundwork for scaling up bilateral cooperation across key growth sectors,” he said

Calling this a watershed moment in India–UK economic relations, Prashant Ruia, Group Chief Executive, Essar said, “The signing of the Free Trade Agreement (FTA) marks the beginning of a new era of strategic collaboration between the two nations. By lowering tariffs, easing market access, and deepening services and investment flows, this landmark deal unlocks immense potential for both economies.”

Also Read | India-U.K. trade deal: Agri exports to grow 20% in 3 years, other key sectors to benefit

Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII) said, “This FTA marks a defining moment in our bilateral relationship, reflecting a shared commitment to inclusive growth, economic resilience, and industrial transformation. It creates a strong foundation for deeper market access, regulatory cooperation, and next-generation partnerships between Indian and UK businesses.”

Commenting on the deal Anish Shah, Group CEO & MD, Mahindra Group said, “The landmark trade agreement between India and the UK marks a transformative moment in the global economic landscape. It’s not just a win for trade, but a blueprint for a modern, values-led partnership that puts innovation, sustainability, and inclusive growth at the heart of global collaboration.”

“This deal is also a testament to the growing stature of India as a trusted partner and innovation powerhouse in the global order. We commend both governments for their bold leadership in charting a shared future rooted in prosperity, sustainability, and trust,” he added.

Published – July 25, 2025 10:23 am IST

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UK’s ex-minister claims blocking India-UK free trade agreement over visa demands: Reports

admin — Sat, 19 Oct 2024 13:04:43 +0000

Conservative MP and leadership candidate Kemi Badenoch
| Photo Credit: Reuters

Britain’s former business and trade secretary Kemi Badenoch, who is the frontrunner to succeed Rishi Sunak as Conservative Party chief and Opposition Leader, has claimed that she blocked the India-UK free trade agreement (FTA) over demands for more visas, according to UK media reports.

The Nigerian heritage shadow minister, who is going head-to-head in an ongoing Tory membership vote with former Cabinet colleague Robert Jenrick, has indicated that one of the reasons the FTA could not be signed off by the Sunak-led Tory government was due to the Indian side expecting more concessions over the issue of migration.

“As business secretary, even as I was trying to do things to limit immigration, we had an India FTA where they kept trying to bring in migration and I said no. It’s one of the reasons why we didn’t sign it,” Badenoch reportedly told ‘The Telegraph’.

But some of her former Tory ministerial colleagues countered in ‘The Times’ that the claims are unlikely because Ms. Badenoch was pushing for a deal as she oversaw several rounds of negotiations towards an FTA expected to significantly enhance the GBP 38 billion a year bilateral trading partnership.

“Kemi just wanted to get a deal at all costs and didn’t really think that the objections that were being put forward were serious. She said they were ideologically driven, that they were impractical and weren’t conducive to good relations with the Indians,” a former Cabinet minister was quoted as saying.

“Kemi wanted a trophy to show post-Brexit benefits and there was a zeal to achieve it,” the former minister said.

“The reality was, all the bargaining power was with the Indians and they had more leverage in negotiations than we did. There was a lot more pressure on us to do all the running, and they were quite nonchalant about doing a deal. That was where the balance of power lay and we were always starting from a weaker position,” the ex-minister said.

A source close to Ms. Badenoch, however, denied claims that she was prepared to sign a deal at any cost and said that the Indian government had decided not to sign a deal with the Conservative government in the hope that it might be able to negotiate better terms under Labour.

“Kemi didn’t want to do a deal that would have changed any UK immigration rules. It’s categorically untrue, she would have never done that. India held out because they knew that under a Labour government, they would get a better deal on students and social security,” the source was quoted as saying by ‘The Times’.

“She did not put visas on the table, she did not sanction her officials to offer up access to the labour market at any point,” the source added.

Meanwhile, while reports from India indicate the FTA negotiations under the Prime Minister Keir Starmer-led Labour Party government are set to commence next month, officials in the UK are not setting any timeline for picking up after 14 rounds of negotiations.

“We remain committed to securing a trade deal with India and intend to resume talks as soon as possible,” Starmer’s foreign affairs spokesperson at 10 Downing Street told PTI this week. Ms. Badenoch and Jenrick are trading blows on various policy areas, with immigration emerging as a key focal point as they continue on the campaign trail to win votes from an estimated 140,000 Conservative members.

Sunak’s successor is scheduled to be declared on November 2, following the British Indian leader’s resignation in the wake of the party’s bruising general election defeat in July under his leadership.

Published – October 19, 2024 06:34 pm IST

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New U.K. Foreign Secretary Lammy to arrive for talks; FTA, security issues on top of agenda

admin — Wed, 24 Jul 2024 00:32:00 +0000

Britain’s Foreign Secretary David Lammy arrives to attend a Cabinet meeting at 10 Downing Street in London on July 23, 2024.
| Photo Credit: Reuters

In the first high-level visit by the newly-elected Labour government in the United Kingdom, U.K. Foreign Secretary David Lammy will arrive on July 24 morning for a day-long visit, where a “full reset” of ties and “economic, domestic and global security” will be at the top of the agenda, the British Foreign Office (FCDO) announced. Mr. Lammy, who is coming to Delhi on his way to Laos for ASEAN meetings, will hold bilateral talks with External Affairs Minister S. Jaishankar. He is expected to call on Prime Minister Narendra Modi and will hold meetings with National Security Adviser Ajit Doval and Commerce Minister Piyush Goyal as well before leaving for Vientiane on Thursday morning. Mr. Lammy is also expected to discuss plans for the new U.K. PM Keir Starmer and Mr. Modi to exchange visits.

“I am traveling to India in my first month as Foreign Secretary because resetting our relationship with the Global South is a key part of how this government will reconnect Britain for our security and prosperity at home,” Mr. Lammy said in a statement ahead of his departure, calling India the “emerging superpower of the 21st century”, one of the fastest growing economies, with the world’s largest population.

With his visit, Mr. Lammy will be fulfilling a promise made at an Indian diaspora event shortly before the U.K.’s election on July 4 that he would visit India “within the month” if the Labour government was elected. He is expected to put reviving India-U.K. Free Trade Agreement (FTA) talks for an early conclusion at the top of his agenda and will also discuss the next steps in the Strategic Partnership. While most of the FTA negotiations, that began in 2022, were completed with the previous Rishi Sunak government, they were put on hold earlier this year with both countries heading to general elections. Officials said that a few issues, including the question of business mobility, tariffs and market access for certain goods still remain unresolved.

“Our Free Trade Agreement negotiations is the floor not the ceiling of our ambitions to unlock our shared potential and deliver growth, from Bengaluru to Birmingham. We have shared interests on the green transition, new technologies, economic security and global security,” Mr. Lammy said.

According to the FCDO statement, Mr. Lammy’s agenda in India includes a visit to a high-tech facility, meetings with Indian business leaders and discussions on cooperating on clean energy initiatives, as well as assisting climate resilience projects for small island states in the Global South.

Extradition cases

Apart from these bilateral issues, India is expected to discuss its concerns about anti-Indian, pro-Khalistan groups operating in the U.K., which have been raised several times in the past. Officials are expected to bring up the long-pending extradition cases against businessmen Vijay Mallya and Lalit Modi, who are wanted in India.

Mr. Lammy may also raise the continued imprisonment of two British nationals in high-profile and controversial cases: Jagtar Singh Johal, arrested in 2017 for his alleged role in targeted killings by pro-Khalistan groups in Punjab, and Christian Michel, who India extradited from the UAE in 2017, wanted in India as the alleged middleman in the Agusta Westland corruption case. In both cases the U.K. government and UN and U.S.-based human rights agencies have questioned their continued imprisonment without a trial, as well as allegations of torture and arbitrary detention in India. Mr. Sunak had raised the Michel case with Mr. Modi on the sidelines of the G-20 summit last year. In the case of Mr. Johal, Mr. Starmer, then in Opposition, had himself written to the U.K. government demanding that the U.K. push for Mr. Johal, accusing Indian authorities of arresting the “online activist” when he visited India for his wedding, and claimed that he had been “tortured into making a confession to charges carrying the death penalty” in the letter.

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