Negotiations regarding a free trade agreement (FTA) between the UK and India appear to have made progress following high-level discussions.
Officials have suggested if the finance ministry demonstrates flexibility on the model Bilateral Investment Promotion Agreement (BIPA), things could progress swiftly over the next couple of months.
The model BIPA has been a stumbling block for several countries in recent years, which is also a concern for the EU, whose members had previously raised their apprehensions.
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The agreement was initially intended to be finalized by the last Diwali, but it faced delays due to the change in leadership in the UK, after Rishi Sunak assumed office.
Some ministers in the UK government raised issues that affected the negotiations.
Government sources now say trade issues are being resolved after discussions between the prime ministers of both countries.
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In recent weeks, at least two senior UK officials have visited India, with one of them meeting Commerce and Industry Minister Piyush Goyal.
While most trade-related issues have been resolved, the remaining aspect involves reducing duties on Scotch, which currently stand at 150 percent.
The UK aims to halve the duties, but the agreement will distinguish between bottled and unbottled imports.
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It is likely a higher concession will be granted for Scotch that is imported in bulk and bottled in India.
Although some major Indian corporate entities expressed concerns about reducing import duties on automobiles and other industrial goods, officials suggest that most of these issues have been resolved, as both countries are eager to finalize the agreement in the next two months or so.
However, there is no clarity on how the government will address the demand for a more liberal foreign direct investment ceiling for the telecom sector, as it was one of the contentious issues during the Indian negotiations.
