We’ll Have Speed, Not Haste: Goyal as India & UK Resume FTA Talks
In a significant development, India and the United Kingdom have decided to restart negotiations for a free-trade agreement (FTA). Union Minister of Commerce Piyush Goyal made the announcement after meeting UK Business and Trade Secretary Jonathan Reynolds, signaling a renewed push to conclude a comprehensive trade deal between the two nations.
The resumption of FTA talks comes at a time when both countries are looking to strengthen their economic ties and boost bilateral trade. The UK’s departure from the European Union (Brexit) has created new opportunities for India to establish itself as a significant trade partner for the UK.
When asked if the FTA can be expected by this year, Goyal emphasized the importance of concluding a good agreement rather than rushing into a deal. “It’s never too late to conclude a good agreement… We’ll have speed but not haste,” he said. This approach highlights the Indian government’s commitment to prioritizing the quality of the agreement over meeting a specific deadline.
The decision to restart FTA talks is a significant development in the India-UK trade partnership. Since the UK’s exit from the EU, the country has been seeking to establish new trade agreements with other nations to strengthen its economic ties. India, with its large and growing market, has emerged as a key partner for the UK.
The FTA negotiations between India and the UK were initially suspended in 2019 due to differences over issues such as tariffs, intellectual property rights, and tariffs. However, both countries have been engaged in quiet diplomacy to resolve these issues and restart the talks.
The resumption of FTA talks is expected to benefit both countries in several ways. For India, a comprehensive trade agreement with the UK can help increase its exports to the country, particularly in sectors such as pharmaceuticals, textiles, and IT. The UK, on the other hand, can benefit from India’s large and growing market, as well as its expertise in sectors such as financial services and education.
The FTA is also expected to promote greater economic cooperation between the two countries. The UK is home to several Indian companies, including major players in the IT and pharmaceutical sectors. A comprehensive trade agreement can help these companies expand their operations in the UK and create new business opportunities.
In addition, the FTA can help promote greater investment between the two countries. The UK is a major source of foreign direct investment (FDI) for India, and a comprehensive trade agreement can help attract more FDI into the country. India, in turn, can invest in the UK’s growing industries such as fintech and healthcare.
The resumption of FTA talks is also expected to have a positive impact on the Indian economy. A comprehensive trade agreement can help boost India’s exports, which have been facing challenges due to the COVID-19 pandemic. The FTA can also help attract more FDI into the country, which is critical for India’s economic growth and development.
In conclusion, the resumption of FTA talks between India and the UK is a significant development that can benefit both countries in several ways. The Indian government’s approach of prioritizing the quality of the agreement over meeting a specific deadline is a welcome move. As Goyal said, “We’ll have speed but not haste.” This approach is likely to ensure that the FTA is comprehensive and beneficial for both countries.
