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Opinion | Race For India’s Markets: Why UK And EU Are Scrambling For A ‘Trade Deal’

35 0
25.02.2025

The race is on, the competition is real, and time is running out. The United Kingdom and the European Union are locked in a high-stakes battle—each vying to be the first to sign a Free Trade Agreement (FTA) with India. But what’s the urgency?

The answer lies in Washington. With Donald Trump back in the White House, the long-touted “transatlantic unity" that defined Western diplomacy for decades has collapsed. The era of predictable alliances is over, and countries that once relied on America’s backing are now scrambling to diversify their economic and strategic partnerships. Nowhere is this more evident than in the UK’s post-Brexit trade strategy.

Since exiting the European Union in 2020, the UK envisioned a future in which it could build independent, dynamic trade relationships, free from EU-imposed constraints. That vision, however, has not materialised as smoothly as hoped. Now, with Trump’s protectionist policies back in play, London realises that time is not on its side. If trade partnerships weren’t secured yesterday, the next best time to build them is now.

That urgency is evident in the UK’s latest moves. Just last week, former British Prime Minister Rishi Sunak met with Indian Prime Minister Narendra Modi, External Affairs Minister Dr S Jaishankar, and Commerce Minister Piyush Goyal. While the visit might have seemed routine, it was anything but. Sunak reportedly pushed for a swift resolution to the stalled FTA negotiations. The urgency became even clearer when newly elected Prime Minister Keir Starmer sent his........

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