Negotiations for the proposed free trade agreement (FTA) between India and the UK, alongside two other key pacts, a bilateral investment treaty (BIT) and a social security agreement, are reportedly facing significant delays due to unresolved issues.
The primary areas of contention include the UK’s newly introduced carbon tax, India’s demands for data localisation, and the inclusion of a sunset clause in the BIT. India has been firm on its stance regarding data localisation, seeking guarantees that sensitive data generated in India will be stored within the country. This issue, alongside the UK’s carbon tax proposal, has complicated the discussions, making it difficult to reach an agreement on the terms of the free trade pact.
