Free trade talks with the UK have stalled following a political crisis

- Britain's agreement to spread its wings in Europe after Corona and the Russia-Ukraine war is important

- In times of recession, no country is particularly eager to enter into a free trade agreement

- Countries with which India has entered into free trade agreements are not seeing the expected results

On the one hand, India's export performance is not progressing as expected or even as encouraging, while on the other hand, the process of free trade agreement with the United Kingdom (UK), an important trading hub for India, was progressing at a slow pace, with political crisis again arising in Britain. A trade deal with it is unlikely to be finalized until the middle of next year. According to the original plan, these agreements were to be signed between the two countries by Diwali, but the UK had already rejected this possibility. Not only have the two countries not yet succeeded in resolving existing differences in terms of providing broad market access to certain types of goods and services, political uncertainty and an economic slowdown in the UK are also believed to be hampering the agreement.

Formal negotiations for a free trade agreement began between the two countries in January this year and are on track to be finalized by Diwali. Commerce Minister Piyush Goyal has already made it clear that India will take its industries into full confidence before entering into a trade agreement with the UK and there will be no rush to sign the agreement. India wants to proceed cautiously. Looking at the current situation in Britain, it seems unlikely that an agreement will be reached before mid-2023. Generally, during a recession, no country is particularly eager to enter into a free trade agreement.

A trade agreement with the UK is of great importance for India, considering the current changing global trade environment as a result of the impact of Corona and the subsequent Russia-Ukraine war, and the exit from Europe. This agreement can prove beneficial for India in creating its own market especially in Europe. The sooner an agreement with Britain is made, the sooner it will be beneficial for India to gain market access not only to Europe but also to some Western countries or to strengthen its position with countries where India has a presence and has free trade agreements. Especially when China's credit is currently in tatters. In other words, the agreement with the UK could prove to be a stepping stone for India.

The Indian government's efforts to reduce trade with China by signing trade agreements with developed countries continue. The slowdown in trade deals with Britain is hurting India more than Britain. India's rulers want to ensure that the country's farmers, industries and consumers are not disturbed in any way before proceeding with the trade agreement.

After the border disputes with China, India has been in a hurry to reduce its dependence on it for trade and is eager for successful talks with the UK. India's strategy is to take away any declining share of China in world trade. Talks with the UK could not take off earlier due to reasons like digital trade, visa norms, duty reduction etc.

Both sides have a positive attitude to speed up economic development through mutual trade in the post-corona era. Apart from the UK, European countries were India's largest export hubs in financial year 2020, i.e. the financial year before Corona. 17 percent of India's total exports were exported at these centers. After Brexit, trade with both Europe and the UK has become important for India. The UK is also now keen on a free trade agreement with India. When Corona has changed the equations of the entire world trade, every country has become eager to spread its business wings beyond the traditional bases. India also wants to increase its presence in major markets.

China is India's biggest competitor in important exports like steel, textiles and chemicals. Despite every effort to diversify exports or bring more products into the export market, India's merchandise exports have not been able to take off. Also, low value products are being exported more than high value products. For example in textiles India exports more cotton yarn or apparel.

With the countries with which India has signed free trade agreements not seeing the expected results, there is an urgent need for a genuine trade agreement that will continue to be fruitful in the upcoming negotiations with Britain. While America, Europe, Canada, UAE are big markets for some of India's products, including apparel, there is an opinion that India is making serious efforts to move forward with the European Union and the UK, its main export hubs for these products. The meeting of the business world depends on the approach taken by India during the upcoming negotiations with the UK, and under the shadow of Corona and the impact of the Russia-Ukraine war, it is not wrong to say that the negotiations must be successful in 2023 if not in 2022 for export growth.