On Thursday, India and UK began their free trade agreement negotiations in New Delhi. Minister of Commerce and Industry Shri Piyush Goyal launched the Free Trade Agreement (FTA) negotiations with the United Kingdom along with Anne-Marie Trevelyan, British Secretary of State for International Trade.
This FTA is expected to facilitate the target of doubling bilateral trade between India and the United Kingdom by 2030, set by the Prime Ministers of both nations, Shri Narendra Modi and Mr. Boris Johnson in May 2021.
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.
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.
Shri Goyal said that the FTA negotiations with the UK are expected to increase our exports in Leather, Textile, Jewellery, and processed Agri products.
He added that India is also expected to register a quantum jump in the export of Marine Products through the recognition of 56 marine units of India.
The Minister said that the Mutual Recognition Agreements (MRAs) on Pharma could provide additional market access.
There is also great potential for increasing exports in service sectors like IT/ITES, Nursing, education, healthcare, including AYUSH and audio-visual services. India would also be seeking special arrangements for the movement of its people, he added.
The Minister assured that subsequent to the unveiling of FTA, the two nations would proactively and regularly engage with each other, for deliberating on the scope and coverage of the trade deal.
Observing that the UK was a major trade partner of India with the substantial bilateral volume of trade in goods and services, Shri Goyal said that the cooperation extended across areas like tourism, tech, startups, education, climate change, etc. and that the two nations were looking forward to a mutually beneficial trade deal with balanced concessions and market access package in a wide range of sectors.
Calling for the enhancement of sectoral cooperation by addressing market access issues and removing trade restrictions, Shri Goyal said that it would help generate direct and indirect employment in both nations.
The Minister said that the India-UK FTA will also contribute to integrating value chains and help augment our mutual efforts to strengthen the resilience of supply chains.
Reminding that the leaders of both nations had envisioned launching the FTA Negotiations in early 2022, Shri Goyal expressed his happiness at the successful conclusion of discussions in a timely manner to announce the launch of our FTA negotiations today.
The Minister also informed that it was also agreed to explore during the FTA negotiations, the possibility of an Interim Agreement to provide quick gains for benefitting businesses in both nations.
Our endeavor is to deliver a comprehensive, balanced, fair, and equitable FTA, to benefit our small, medium and micro-enterprises in both nations, he said.