We’ll have speed, not haste: Goyal as India & UK resume FTA talks
The Union Minister of Commerce, Piyush Goyal, has announced that India and the United Kingdom have decided to restart negotiations for a free-trade agreement (FTA). This development comes as a significant step towards enhancing trade relations between the two nations. In a recent meeting with UK Business and Trade Secretary Jonathan Reynolds, Goyal expressed optimism about concluding a good agreement, stating that it’s “never too late” to do so.
The decision to resume FTA talks comes after a brief hiatus in discussions. The two nations had initiated talks on an FTA in 2019, but the process was put on hold due to various reasons, including the UK’s departure from the European Union (EU) and the subsequent focus on completing the UK’s own trade agreements.
The resumption of FTA talks is significant, as it has the potential to boost bilateral trade between India and the UK. The two nations currently have a trade relationship worth around £23 billion (approximately ₹2.5 trillion). An FTA would not only simplify trade procedures but also increase the flow of goods and services between the two countries.
When asked if an FTA could be expected by this year, Goyal emphasized the importance of speed but not haste. He said, “It’s never too late to conclude a good agreement… We’ll have speed but not haste.” This comment suggests that the Indian government is committed to concluding an agreement that benefits both nations, rather than rushing through the process.
The UK’s Business and Trade Secretary, Jonathan Reynolds, also expressed his enthusiasm for the resumed talks. He stated that the UK is committed to building a strong partnership with India, and an FTA would be an important step in achieving that goal.
The resumption of FTA talks has been welcomed by various industries in both countries. The Confederation of Indian Industry (CII) has called the development “a significant step forward” and expressed hope that the agreement would be concluded soon.
The Indian government has been working towards improving trade relations with various countries, including the UK. In recent years, India has signed FTAs with several nations, including the United States, Australia, and the Association of Southeast Asian Nations (ASEAN).
The UK, on the other hand, has been focusing on building trade relationships with countries outside the EU. The nation has signed FTAs with several countries, including Japan, Canada, and the United States.
An FTA between India and the UK would have several benefits for both nations. It would increase the flow of goods and services between the two countries, create new trade opportunities, and increase economic cooperation.
One of the key areas of focus for the FTA would be services trade. The UK is strong in services, particularly in areas such as finance, technology, and education, while India has a strong services sector in areas such as IT, healthcare, and logistics. An FTA would allow both nations to increase their services trade, creating new opportunities for businesses and workers.
Another area of focus would be trade in goods. The UK has a strong manufacturing sector, while India has a large consumer market. An FTA would allow both nations to increase their trade in goods, particularly in areas such as automobiles, textiles, and pharmaceuticals.
The FTA would also provide opportunities for increasing economic cooperation between the two nations. The UK and India have a strong cultural and historical relationship, and an FTA would allow for greater collaboration in areas such as education, research, and innovation.
In conclusion, the decision to resume FTA talks between India and the UK is a significant step forward in enhancing trade relations between the two nations. With both nations committed to concluding a good agreement, there is hope that the FTA will be concluded soon. The benefits of the FTA would be far-reaching, including increased trade in goods and services, new trade opportunities, and increased economic cooperation.
