NEW DELHI, July 19: The India-UK Free Trade Agreement (FTA) is projected to increase bilateral trade between the two countries by 25.5 billion pounds every year, leading industry experts said on Saturday.
India and the UK are expected to sign the FTA next week to boost trade and investment between the two countries. Under this FTA, there are provisions for tariff reductions on 90 per cent of traded goods between the two countries.
According to Anna Shotbolt, Deputy Trade Commissioner for South Asia at the British High Commission, it is not only about tariffs, which are indeed a crucial aspect that will benefit many industries.
“Creative companies will also benefit through stronger copyright protections, and the services sector will see gains as well. The Double Taxation Avoidance Convention will also help workers on both sides, creating more transparency and certainty,” said Shotbolt at an event here organised by industry chamber PHDCCI.
Dr Ranjeet Mehta, CEO and Secretary General, PHDCCI, emphasised that the UK-India FTA negotiations began when India was the fifth-largest economy, and by the time of its signing, India had become the fourth-largest.
“Britain is among the largest developed economies, and this FTA is a significant bilateral trade agreement for India,” he noted.
He further discussed the importance of the social security clause that supports Indian professionals going to the UK and said that we must take advantage of this FTA.
“As PHDCCI celebrates 120 years of its legacy, we plan to mount a business delegation to the UK this September, as we are keen to explore the opportunities this agreement presents,” added Dr Mehta.
The FTA will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies by 2030.
“India’s vision of net zero by 2070 also requires businesses, especially MSMEs to be sustainable and technologically equipped. Whether in services or products, India should collaborate more with the UK, which presents a large market for Indian MSMEs,” Mehta emphasised.
Ajay Aggarwal, President, Toy Association of India, pointed out major areas where Indian businesses can benefit in the UK market. Elaborating about the toy industry which is growing rapidly and has shifted from being import-dependent to now producing around 80 per cent domestically, he emphasised that there is enormous scope for collaboration. (IANS)
