UK-India Business Council Optimistic as FTA Negotiations Commence
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Synopsis
The UK-India Business Council is excited about the renewed Free Trade Agreement discussions, highlighting the growing bilateral trade and investment between the two nations. With meetings held between UK Secretary Jonathan Reynolds and Indian officials, the partnership is poised for significant advancements in trade and cooperation.
Key Takeaways
- Resumption of FTA negotiations between UK and India.
- Trade in goods and services grew by 10% to 42 billion pounds.
- 13 rounds of negotiations have been completed.
- Political will exists for a mutually beneficial agreement.
- Focus on cooperation in AI, security, and climate change.
New Delhi, Feb 25 (NationPress) The UK-India Business Council expressed enthusiasm on Tuesday regarding the renewal of the Free Trade Agreement (FTA) discussions during the visit of UK Business and Trade Secretary Jonathan Reynolds to India, which encompasses two days of discussions with Commerce and Industry Minister Piyush Goyal and his team.
The negotiations between India and the UK were resumed on Monday.
This marks a significant and optimistic development. It is important to highlight that the bilateral trade and investment between the UK and India are already on the rise. The total trade in goods and services surged by 10 percent, reaching 42 billion pounds in the four quarters up to the conclusion of Q2-2024. This trade volume has nearly doubled compared to the pre-pandemic figure in 2019, which was 24.1 billion pounds, as per a statement by the UK-India Business Council (UKIBC).
The UK and India have completed 13 rounds of the bilateral FTA discussions, with the 14th round currently on hold due to the UK’s general elections scheduled for May 2024. Significant advancements have been achieved since the negotiations commenced in 2022. Both nations are dedicated to significantly enhancing bilateral trade and investment flows, with a clear political desire to finalize a mutually beneficial agreement, as stated.
The UKIBC commended the ongoing commitment evident from both nations, reaffirming at the highest levels the priority given to this partnership.
Richard Heald, Chair of the UK-India Business Council, remarked, "The visit from Secretary of State Jonathan Reynolds reaffirms the UK government's dedication to fostering a more ambitious and forward-looking trade and investment alliance with India."
He noted that following last year's announcement regarding the Technology Security Initiative between India and the UK, the partnership has further evolved with a renewed emphasis on cooperation, collaboration, and integration in areas such as AI, security, climate change, development, and research and innovation.
Heald emphasized that the successful conclusion of the FTA would bolster economic growth for the world’s 5th and 6th largest economies and would also catalyze cooperation in various other domains.
"Crucially, it will highlight the fact that the UK and India are strategic partners. This heralds an exciting chapter in the UK-India alliance. As India advances towards Viksit Bharat@2047, UKIBC and British enterprises more broadly acknowledge that a successful FTA is essential in this long-term journey and are eager to support India’s aspirations," he added.
