As Prime Minister Narendra Modi embarks on a four-day visit to the UK and Maldives, the Congress party has raised alarms over the potential India-UK Free Trade Agreement (FTA), warning of its detrimental impact on domestic industries. Congress leader Jairam Ramesh criticized the FTA, claiming it endangers micro, small, and medium enterprises (MSMEs), automobile manufacturers, and the pharmaceutical sector.

Ramesh, citing the Global Trade Research Initiative, noted that the FTA opens India’s USD 600 billion government procurement market to UK firms, a shift from previous policy that protected local enterprises. He highlighted a drastic cut in car import duties from 100% to 10%, undermining the “Make in India” initiative, and new patent rules favoring big pharmaceutical lobbies, which could limit access to affordable generic drugs.

The agreement also fails to exempt India from the UK’s Carbon Border Adjustment Mechanism, allowing carbon taxes on Indian exports. Ramesh warned that this could set a precedent for similar deals with the EU and US, further straining domestic industries.

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Modi, in his departure statement, emphasized strengthening the India-UK strategic partnership across trade, technology, and innovation. He will meet UK Prime Minister Keir Starmer and King Charles III before heading to the Maldives at President Mohamed Muizzu’s invitation.

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