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With talks between India and the UK on a free trade agreement at a ‘critical point’, the visit of Trade and Industry Minister Piyush Goyal to London this week helped move the negotiations forward as both countries held discussions on various ‘difficulty’ issues. An official statement said on Wednesday.
“It is encouraging that significant progress was made during their frank and open discussions on various challenging issues,” the Commerce Department said in a statement.
The Minister is on a three-day visit to London from 10 July.
“The visit came at a strategic time, coinciding with the critical phase of the ongoing negotiations, and has proven to be instrumental in moving the discussions forward,” the statement read.
Goyal met with the UK’s Minister of State for Trade, Kemi Badnoch, to discuss the Free Trade Agreement (FTA) and explore opportunities to enhance cooperation between the two countries.
She said that the two sides focused on the low-hanging fruit, which included closing several chapters in the negotiations.
This pragmatic approach aims to resolve issues in which negotiators have faced challenges. The visit proved crucial in overcoming critical obstacles and charting a path forward towards an ambitious and mutually beneficial trade deal.”
Recognizing India’s enormous population of 1.4 billion and its remarkable economic growth, both ministers recognized the enormous potential of the Indian market for Britain.
Negotiations for a trade agreement between India and the UK started on January 13, 2021.
Negotiations between the two countries on the agreement cover up to 26 policy areas/chapters. The investment is being negotiated as a separate agreement (bilateral investment treaty) between India and the UK and will be concluded in conjunction with the FTA.
Last year, both countries missed the Diwali deadline due to the unprecedented economic and political crises in the United Kingdom.
The Indian industry is demanding greater access for its skilled professionals in the UK market and entry into Indian whisky by removing the requirements for a minimum three-year maturity period. The UK is also seeking a significant reduction in import duties on Scotch whiskey. Britain is also looking for more opportunities for UK services in Indian markets.
Bilateral trade between the two countries increased to US$20.36 billion in 2022-23 from US$17.5 billion in 2021-22.
India’s main exports to the UK are readymade garments, textiles, precious stones, jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery and tools, pharmaceuticals and marine products.
Major imports include precious and semi-precious stones, ores, scrap metal, engineering goods, professional tools other than electronics, chemicals, and machinery.
In the services sector, the UK is the largest market in Europe for Indian IT services.
In the area of investment, the UK is one of the largest investors in India. In 2022-23, India received US$1.74 billion in foreign direct investment from Britain compared to US$1 billion in 2021-22. During April 2000 and March 2023, investments amounted to 33.9 billion USD.
Under these agreements, two trading partners significantly reduce or eliminate tariffs on the maximum number of goods traded between them, along with relaxing standards to boost trade in services and investments.
Britain, with a US$3.1 trillion economy according to World Bank data, has long been a powerhouse of the services sector. The city of London, which is one of the largest financial markets in the world, has always attracted Indian companies seeking to raise funds from the global market.
(This story was not edited by the News18 staff and was published from a syndicated news agency feed – PTI)
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