India FTA talks restart on UK Chancellor’s faster growth agenda

London, Jan 29 (PTI) The Free Trade Agreement (FTA) negotiations with India were placed high on the UK government’s faster economic growth agenda on Wednesday, when Chancellor Rachel Reeves reiterated her Cabinet colleague’s visit to India next month.

UK Business and Trade Secretary Jonathan Reynolds had earlier this week revealed plans to visit India in February to resume talks in pursuit of a “comprehensive FTA and Bilateral Investment Treaty”.

The negotiations for an agreement, expected to significantly enhance the estimated GBP 42 billion a year bilateral trade partnership, had stalled for general elections in both countries last year.

“I am pleased to confirm that the Business and Trade Secretary (Reynolds) will shortly visit India to restart talks on the Free Trade Agreement and Bilateral Investment Treaty, which the last government failed to deliver,” said Rachel Reeves, as she delivered a key economic policy speech in Oxfordshire.

The Chancellor, under some pressure over sluggish economic growth under the government, laid out a series of measures to go “further and faster” to deliver the Labour Party's ‘Plan for Change’.

It involves new measures to deliver the Oxford-Cambridge Growth Corridor, which is intended to boost the UK economy by up to GBP 78 billion by 2035 according to industry experts.

“This area has the potential to be Europe’s Silicon Valley. To make that a reality, we need a systematic approach to attract businesses to come here and to grow here,” said Reeves, unveiling her outlook for a series of infrastructure investments for the region.

“The region houses internationally acclaimed clusters of innovation in each of the growth sectors for the nation,” said Dipesh J. Shah OBE, the Indian-origin Chair of the Oxford to Cambridge Partnership.

“Already one of the world’s great science powerhouses, the region’s full potential will rely on connecting its incredible ecosystems of businesses, places and communities. Investments announced today will spur more and will help local leaders to deliver on their ambitious plans for their communities,” he said.

Among the other measures, Britain's finance minister also confirmed government backing for an expansion of Heathrow Airport, which she said connects the UK to "emerging markets all over the world".

“The question of whether to give Heathrow, our only hub airport, a third runway has run on for decades...we cannot duck the decision any longer,” she added.

The move is likely to face opposition from environmental groups, who have been opposed to the expansion of one of Europe’s busiest airports. PTI AK AMS

Source: PTI