We’ll have speed, not haste: Goyal as India & UK resume FTA talks
The era of globalization has brought numerous benefits to the world economy, including increased trade and investment opportunities. To further facilitate international trade, many countries have been engaging in free trade agreements (FTAs) to reduce tariffs and other barriers to trade. In a significant development, India and the United Kingdom have decided to restart negotiations for a free-trade agreement (FTA), which is expected to boost bilateral trade and economic ties between the two nations.
The announcement was made by Union Minister of Commerce Piyush Goyal after meeting UK Business and Trade Secretary Jonathan Reynolds. When asked if the FTA can be expected by this year, Goyal said, “It’s never too late to conclude a good agreement… We’ll have speed but not haste.” This statement suggests that the Indian government is committed to concluding a mutually beneficial agreement, but it will not rush into a deal that compromises on its interests.
The decision to resume FTA talks comes at a time when both countries are looking to strengthen their economic ties. The UK is India’s fifth-largest trading partner, and bilateral trade has been growing steadily over the years. In 2020, the total trade between the two countries stood at around $24 billion. An FTA can help increase this figure by reducing tariffs and other trade barriers, making it easier for businesses to operate in each other’s markets.
The Indian government has been actively pursuing FTAs with various countries to boost exports and attract foreign investment. In recent years, India has signed FTAs with countries such as the United States, Australia, and the European Union. The FTA with the UK is expected to be a significant development, given the country’s strong economic ties with India.
The UK, which is in the process of leaving the European Union, is also looking to strengthen its trade ties with other countries. An FTA with India can help the UK to diversify its trade base and reduce its dependence on the EU market. The UK is expected to be one of the largest economies in the world in the coming years, and an FTA with India can help it to increase its trade with the Asian region.
The FTA talks between India and the UK are expected to cover a range of issues, including tariffs, services, and investment. The agreement is likely to include provisions to reduce or eliminate tariffs on goods such as textiles, pharmaceuticals, and automotive products. It may also include provisions to increase trade in services such as financial services, education, and healthcare.
In addition to boosting trade, the FTA can also help to increase investment between the two countries. The UK is a major investor in India, and an FTA can help to increase investment in sectors such as infrastructure, renewable energy, and manufacturing. India, on the other hand, is expected to invest in the UK’s technology and financial services sectors.
The FTA talks between India and the UK are expected to be a complex and challenging process. The two countries have different economic systems and regulatory frameworks, which can make it difficult to reach an agreement. However, both countries have shown a willingness to engage in constructive dialogue and to find common ground.
In conclusion, the decision to resume FTA talks between India and the UK is a significant development that can help to boost bilateral trade and economic ties between the two nations. The agreement is expected to cover a range of issues, including tariffs, services, and investment, and can help to increase trade and investment between the two countries. While the talks are expected to be complex and challenging, both countries have shown a willingness to engage in constructive dialogue and to find common ground.
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