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 Finance Minister Nirmala Sitharaman has described the Free Trade Agreement (FTA) between India and the United Kingdom, signed on May 6, as ushering in “a new era in bilateral trade” that will significantly broaden market access for Indian exporters and stimulate industrial innovation. Speaking at the NEXT Milan Forum’s plenary session on Balancing Economic and Climate Resilience at Bocconi University, Sitharaman emphasized the growing importance of bilateral trade agreements in today’s global environment. “This agreement will open greater market access for Indian exporters. It’s a boost for industries and innovation,” Sitharaman stated in a post on X (formerly Twitter). “While multilateral agreements were dominant for some time, today’s landscape favors countries forming their own bilateral arrangements.” She pointed out that this shift is largely due to the declining effectiveness of multilateral frameworks amid rising protectionism worldwide. The India-UK deal, finalized af...

 Despite progress in finalizing a Free Trade Agreement (FTA) between India and the United Kingdom, India has issued a firm warning: any move by the UK to implement a Carbon Border Adjustment Mechanism (CBAM) will prompt retaliation. Senior officials from the Ministry of Commerce confirmed this stance on May 8. “Both countries have agreed that if the UK introduces CBAM, India reserves the right to take retaliatory measures. This understanding has been reached, and official communication will soon be exchanged to confirm it,” a top government official stated. Related: India-UK FTA text to be finalized within 3 months, setting the stage for signing. Another official highlighted that Indian exporters are primarily concerned about the potential increase in documentation and compliance requirements, rather than the risk of losing market access. “CBAM won't block Indian exports to the UK, but it could bring in additional bureaucracy. One solution being considered is imposing a domestic...

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