LONDON: India and the UK are set to officially launch negotiations on an ambitious free trade agreement at an event in New Delhi on Thursday, with Britain represented by its visiting international trade secretary Anne-Marie Trevelyan.
An agreement would spell huge benefits for both countries, including increasing access to each other’s markets, more goods and services for consumers and a boost to jobs and wages.
Trevelyan, who landed in New Delhi on Wednesday, will meet India’s minister of commerce and industry Piyush Goyal to initiate the talks, sources said.
The actual negotiations between the deputed teams are expected to start next week, making it the quickest start to formal trade talks involving the UK following a launch.
“These negotiations offer a great prize for both countries. I would expect to see increased access to the UK market for Indian exporters, across a range of sectors – for example, food and drink and textiles. I would also expect to see the deal facilitating even more UK investment in India, creating more quality jobs for India’s talented young population. And I expect the deal to give Indian consumers more access, at more affordable prices, to more UK goods and services,” Kevin McCole, managing director of the UK-India Business Council, said.
Investment from Indian companies in Britain supports 95,000 jobs across the UK and is likely to grow with a new trade deal. It is the UK’s strategy to refocus trade on the Indo-Pacific and the Indian economy is set to become the world’s third biggest economy by 2050, with a bigger population than the US and EU combined.
“By 2050, India will be the world’s third largest economy with a middle class of almost 250 million shoppers. We want to unlock this huge new market,” Trevelyan said.
A deal would put UK businesses at the front of the queue to supply India’s market of 1.4 billion consumers. A deal with India has the potential to almost double UK exports to India and boost total trade by as much as £28 billion (Rs 282,000 crore) a year by 2035. UK exports to India such as Scotch whisky and cars currently face enormous duties of 150% and 125% respectively. Wind turbine parts from Britain have import tariffs as high as 15%.
Removing duties alone would increase UK exports to India by up to £6.8 billion (Rs 68,000 crore).
“India is one of the fastest growing global markets with increasing demand for personal mobility and long-term plans to transition to electric vehicles. This presents major opportunities for UK automotive companies,” Mike Hawes, society of motor manufacturers and traders chief executive, said.
FICCI president Sanjiv Mehta said “the urgency and pace” shown by the UK illustrated the importance accorded to India as a key economic partner. “Emphasis on promoting new frontiers in the future, is noteworthy. This will help both countries to build a greener, more innovative and more sustainable economies. FICCI members from the agri, pharma and life sciences, renewables and electric vehicles, financial services and healthcare sectors, amongst others, would be closely following these discussions, towards which they have shared their recommendations with government of India. We hope this will help the Indian government to negotiate a win-win deal with the UK.”
Sources said India was seeking a more liberalised UK visa regime for Indian citizens in any deal.
The UK is free to negotiate and sign trade agreements with other countries as a result of leaving the EU. This year the UK plans to launch trade negotiations with Canada, Mexico and the Gulf and secure accession to the CPTPP trade bloc.
During her visit, Trevelyan will co-chair a meeting of the UK-India Joint Economic and Trade Committee to review how businesses in both countries are benefiting from existing market access commitments. She is also expected to meet external affairs minister S. Jaishankar, finance minister Nirmala Sitharaman, and environment minister Bhupender Yadav.
An agreement would spell huge benefits for both countries, including increasing access to each other’s markets, more goods and services for consumers and a boost to jobs and wages.
Trevelyan, who landed in New Delhi on Wednesday, will meet India’s minister of commerce and industry Piyush Goyal to initiate the talks, sources said.
The actual negotiations between the deputed teams are expected to start next week, making it the quickest start to formal trade talks involving the UK following a launch.
“These negotiations offer a great prize for both countries. I would expect to see increased access to the UK market for Indian exporters, across a range of sectors – for example, food and drink and textiles. I would also expect to see the deal facilitating even more UK investment in India, creating more quality jobs for India’s talented young population. And I expect the deal to give Indian consumers more access, at more affordable prices, to more UK goods and services,” Kevin McCole, managing director of the UK-India Business Council, said.
Investment from Indian companies in Britain supports 95,000 jobs across the UK and is likely to grow with a new trade deal. It is the UK’s strategy to refocus trade on the Indo-Pacific and the Indian economy is set to become the world’s third biggest economy by 2050, with a bigger population than the US and EU combined.
“By 2050, India will be the world’s third largest economy with a middle class of almost 250 million shoppers. We want to unlock this huge new market,” Trevelyan said.
A deal would put UK businesses at the front of the queue to supply India’s market of 1.4 billion consumers. A deal with India has the potential to almost double UK exports to India and boost total trade by as much as £28 billion (Rs 282,000 crore) a year by 2035. UK exports to India such as Scotch whisky and cars currently face enormous duties of 150% and 125% respectively. Wind turbine parts from Britain have import tariffs as high as 15%.
Removing duties alone would increase UK exports to India by up to £6.8 billion (Rs 68,000 crore).
“India is one of the fastest growing global markets with increasing demand for personal mobility and long-term plans to transition to electric vehicles. This presents major opportunities for UK automotive companies,” Mike Hawes, society of motor manufacturers and traders chief executive, said.
FICCI president Sanjiv Mehta said “the urgency and pace” shown by the UK illustrated the importance accorded to India as a key economic partner. “Emphasis on promoting new frontiers in the future, is noteworthy. This will help both countries to build a greener, more innovative and more sustainable economies. FICCI members from the agri, pharma and life sciences, renewables and electric vehicles, financial services and healthcare sectors, amongst others, would be closely following these discussions, towards which they have shared their recommendations with government of India. We hope this will help the Indian government to negotiate a win-win deal with the UK.”
Sources said India was seeking a more liberalised UK visa regime for Indian citizens in any deal.
The UK is free to negotiate and sign trade agreements with other countries as a result of leaving the EU. This year the UK plans to launch trade negotiations with Canada, Mexico and the Gulf and secure accession to the CPTPP trade bloc.
During her visit, Trevelyan will co-chair a meeting of the UK-India Joint Economic and Trade Committee to review how businesses in both countries are benefiting from existing market access commitments. She is also expected to meet external affairs minister S. Jaishankar, finance minister Nirmala Sitharaman, and environment minister Bhupender Yadav.
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