UK trade minister to relaunch trade talks with ‘vibrant market’ India

London, Feb 24 (PTI) UK Business and Trade Secretary Jonathan Reynolds on Monday said securing a Free Trade Agreement (FTA) with “vibrant market” India is a top priority for the British government.

Ahead of the relaunch of negotiations, stalled by the general election cycles in both countries last year, the Department for Business and Trade (DBT) said there will be two days of “focussed discussions” in New Delhi.

“Securing a trade deal with what is soon-to-be the third biggest economy in the world is a no-brainer, and a top priority for me and this government,” said Reynolds, who arrived in New Delhi on Monday for the talks.

This week marks the first time trade ministers from both countries, Reynolds and Union Minister of Commerce and Industry Piyush Goyal, will formally get their negotiating teams around the table under Britain's Labour Party government elected in July 2024.

“That is why I’m flying to New Delhi with our top negotiating team to show our commitment to getting these talks back on track. Only a pragmatic government can deliver the economic growth and stability that the British public and British businesses deserve, delivering on the Plan for Change,” Reynolds said ahead of the relaunch.

The minister stressed that growth will be the “guiding principle” in the trade negotiations.

“I’m excited about the opportunities on offer in this vibrant market,” he added.

India and the UK have held 14 rounds of negotiations since January 2022 under the previous Conservative Party government towards an FTA, with an aim to significantly enhance the estimated GBP 41 billion a year bilateral trade partnership.

The DBT describes an FTA as a “huge economic prize”, with India forecast to have the highest growth rate in the G20 for the next five years and set to become the world’s third-biggest economy by 2028.

“As a leading global bank operating in India for over 160 years, the opportunities for British businesses are significant,” said Saif Malik, Standard Chartered UK CEO.

“Whether it’s improved access to India’s growing consumer market, opportunities in manufacturing, infrastructure and innovation, or collaboration in financial and professional services, the relaunch of trade talks can unlock even greater trade, investment and prosperity across the UK-India corridor,” he said.

The relaunch of talks this week will open against a backdrop of commerce and artisans on a visit to Delhi’s National Crafts Museum. The ministers on both sides are also expected to spend time visiting BT India’s office in Gurugram – one of the largest UK employers in India – to see first-hand how UK tech and Indian talent are helping solve global challenges, DBT said.

“The UK government’s visit reaffirms its commitment to a new ambitious and future-focused trade and investment relationship with India,” said Richard Heald, Chair of the UK India Business Council (UKIBC).

“We are delighted to note the progress on the UK-India Free Trade Agreement negotiations. Success in the FTA will support further economic growth for the world’s fifth and sixth-largest economies. It will catalyse collaboration beyond into other areas too. Importantly, it will signal the UK and India are strategic partners. This is truly an exciting chapter of the UK-India partnership,” he said.

As part of the visit, the DBT said UK Investment Minister Poppy Gustafsson will address investors in Mumbai and Bengaluru, “to sell the UK as the best and most connected place for Indian businesses to invest”.

According to official data, India has been the second biggest source of foreign direct investment (FDI) into the UK for five consecutive years in terms of number of projects. In terms of value, the most recent stats show a 28 per cent year-on-year increase in investment stock at the end of 2023, with two-way investments supporting over 600,000 jobs across both countries.

From the UK perspective, an FTA with India – expected to have a 95 million strong middle class by 2035 – will unlock new opportunities for businesses and consumers in all regions of the country to support jobs, boost wages, and back the high-growth sectors such as advanced manufacturing, clean energy, financial services, and professional and business services.

Meanwhile, India will be keen to ensure a fair and equitable exchange, including better access to the UK market and easier mobility for its professionals. PTI AK NSA NSA NSA

Source: PTI