UK and India formally ventured into enterprising free trade agreement talks in New Delhi on Thursday intending to wrap up a deal by the end of the year that could boost annual bilateral trade by billions of pounds.
This trade agreement is speculated to play a key role in UK’s endeavour to double trade with India by 2030 which will be supercharging the growth of the UK’s trading affinity with a total of over £23bn in 2019. The agreement will inculcate huge advantages for both nations and could boost the UK’s total trade by up to £28 billion a year by 2035 and expand wages by up to £3 billion across the UK.
Speaking on the occasion, Shri Piyush Goyal said that both India and UK are vibrant democracies, with a partnership built on our shared history and rich culture. The diverse Indian diaspora in the UK, who act as a “Living Bridge”, adds further dynamism to the relations between the two countries, he added.
— Piyush Goyal (@PiyushGoyal) January 13, 2022
The Minister said that the FTA with the UK is expected to provide certainty, predictability and transparency and will create a more liberal, facilitative and competitive services regime.
This visit will illustrate the UK’s tilt to Indo-Pacific and kick off a ‘5-star year of trade’, with strategies to launch negotiations with Canada, Mexico and the Gulf and secure accession to the £8.4 trillion CPTPP trade block.
UK’s world-leading renewables industry is all set to profit from inter-countries pacts such as import tariffs as high as 15% on wind turbine parts from the UK. This would encourage UK’s green industries – The Indian government plans to install 175 GW of renewable energy capacity by 2022 and much better in the forthcoming decades.
India and UK Launch Free Trade Agreement Negotiations
🔶Proposed FTA expected to help double bilateral trade by 2030
🔶FTA to give major fillip to Indian exports in labor intensive sectors like Leather, Textile, Jewellery and processed Agri-products
— PIB India (@PIB_India) January 13, 2022
“A trade deal with India’s booming economy offers huge benefits for British businesses, workers and consumers. As we take our historic partnership with India to the next level, the UK’s independent trade policy is creating jobs, increasing wages and driving innovation across the country,” the UK prime minister Johnson said.
“The UK has world-class businesses and expertise we can rightly be proud of, from Scotch whisky distillers to financial services and cutting-edge renewable technology. We are seizing the opportunities offered in growing economies of the Indo-Pacific to cement our place on the global stage and deliver jobs and growth at home,” he added,
During its visit to India, the International Trade Secretary will also co-chair a meeting of the UK-India Joint Economic and Trade Committee to inspect how businesses in both countries are profiting from existing market access obligations under the UK-India Enhanced Trade Partnership agreed on last May by Prime Minister Boris Johnson and Indian PM Narendra Modi.