THE India-UK free trade agreement (FTA) brings "stability and predictability" for businesses in both countries, commerce and industry minister Piyush Goyal said on Wednesday (18).
The minister shared his optimism around the "good marriage" agreed between both countries, which will lead to doubling bilateral trade in five years.
"A free trade agreement brings stability and predictability to the relationship between two countries," said Goyal at an event in London.
"That gives confidence to business to start investing in each other's economy and I think this will also pave the way for greater investments in the two economies, add to our trade in goods and services... India and UK can partner in innovation to work together to bring more resilient supply chains, working with each other, complementing each other and adding value and profits to both countries."
Earlier in the day, the minister arrived in London on a two-day visit to discuss with his UK counterpart Jonathan Reynolds the next steps towards implementation of the FTA, and explore ways to boost trade and investment between the two countries.
In their first joint public interaction since the FTA negotiations concluded last month, Reynolds said he was "genuinely excited" about the prospects opened up with the FTA.
Reynolds had told the House of Commons last week that the trade deal is estimated to increase bilateral trade in the long run by £20 billion ($25.5bn) every year – from the current annual estimate of £32.3bn ($41bn) – as tariffs are slashed across key sectors on both sides.
"This trade agreement is a huge economic win for the UK — the biggest trade deal since Brexit and the best deal that India has ever offered," Reynolds told Parliament.
On the Indian side, the Ministry of Commerce and Industry highlighted significant positive gains for employment in the country, offering a substantial improvement in competitiveness of Indian goods in the UK vis-à-vis other countries as well as easing mobility for professionals.
The FTA, announced on May 6 with a target to double trade between the two economies to £94.5bn ($120bn) by 2030, is now undergoing a process of legal text formalisation before it can come into force.
"Both leaders will review the progress made in the ongoing FTA negotiations and chart out a clear, time-bound roadmap for its finalisation and implementation," the commerce ministry said in a statement.
During his two-day UK visit, Goyal is also set to hold talks with chancellor Rachel Reeves to discuss macroeconomic priorities, financial cooperation, and investment facilitation between the two countries.
Besides, the minister is scheduled to meet secretary of state for culture, media and sport Lisa Nandy to explore avenues of collaboration in creative industries and innovation-driven sectors.
"These engagements will bring together global business leaders, investors, and policy experts to deliberate on the strategic contours of the India-UK economic corridor and the transformative impact of the proposed FTA," the statement said.
Also, Goyal is expected to interact with leading CEOs and industry stakeholders from key sectors, including shipping, fintech, logistics, and advanced manufacturing, with a view to deepening commercial linkages and promoting cross-border investments.
The bilateral trade between India and the UK increased to £16.8bn in 2023-24 from £16.1bn in 2022-23.
(PTI)
Helios by artist Luke Jerram