Ink India-Britain free trade, unlock new opportunity
- India and Britain launched trade talks in Delhi, with an aim to finalise a free trade agreement (FTA) as soon as possible.
- The proposed pact with Britain could help double bilateral trade by 2030, a Government statement said.
What is an FTA?
- An FTA is an agreement between two countries wherein it allows free flow of goods and services to and from both sides, removing all tariff barriers to boost trade with one another.
Transforming India-UK partnership
- Doubling bilateral trade: both countries declared to double bilateral trade by 2030, which totalled over £23 billion in 2019.
- Reduce barriers to trade: Both counties to take rapid steps to reduce barriers to trade.
- FTA: The groundwork necessary to begin work on a Free Trade Agreement (FTA) had to be prepared by the end of 2021.
Trade relations at present
- Approximately 600 U.K. companies in India employing more than 3,20,000 people.
- In UK , India is a big investor in Dynamic sectors such as fintech, electric vehicles and batteries.
- India have oppportunity to overhaul its economy and society in coming 30 years, as it hits its demographic sweet spot.
Benefits of FTA
- Stimulate growth and employment in both countries.
- Lower barriers with greater regulatory certainty would incentivise small and medium-sized enterprises to export their goods and services.
- Improvements in the variety and affordability of product for consumers of both countries.
- Strategic reasons: The British Review of our overseas policy, describes the world as messier, with more geo-strategic competition.
Conclusion
- FTA would mark a new way of working between the U.K. and India.
- Establishes New framework between two countries that can grow and flourish together, putting the colonial economic relationship behind.