Date : 14 Jan 2022
Launch of India-UK Free Trade Agreement NegotiationsTags :
Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
Why in News?
- The Republic of India and United Kingdom have formally launched negotiations for a Free Trade Agreement between our two countries. This announcement has been made by Indian Minister for Commerce and Industry Piyush Goyal and UK Trade Secretary, Anne-Marie Trevelyan, who is in New Delhi for Free Trade Agreement discussions.
- A India-UK Free Trade Agreement would be a substantial opportunity for both of our economies and a significant moment in the India-UK bilateral relationship.
- India is looking forward to a very multidimensional economic partnership between the two countries particularly when both share vibrant democracies, share rich history and traditional cultural ties over centuries. The minister said, the diverse Indian Diaspora in the UK who are in some sense a living bridge between the two nations add a lot of dynamism to this relationship.
- The India-UK bilateral trading relationship is already significant, and both sides have agreed to double that bilateral trade by 2030, as part of Roadmap 2030 announced by the Prime Minister Narendra Modi and Prime Minister Boris Johnson in May 2021.
- India and the UK will seek to agree a mutually beneficial agreement supporting jobs, businesses and communities in both countries.
- This cooperation will extend in areas like tourism, technology start-ups education climate change amongst others we looking forward to a very strong partnership a mutually beneficial trade agreement with balanced concessions and market access in a wide range of sectors.
- The India UK FTA will also contribute in integrating value chains or supply chains between the two countries and augment our mutual efforts to strengthen the resilience of supply chains between the two nations.
- This agreement is aimed at liberalising norms and reducing customs duties to boost trade in goods and services, besides promoting investments.
- India's exports to the UK stood at 8.15 billion US dollar in 2020-21, while imports aggregated at 4.95 billion US dollar.
- Rready-made garments and textiles, gems and jewellery, engineering goods, petroleum products, transport equipment, spices, pharmaceuticals and marine products.
- In the services sector, the UK is the largest market in Europe for Indian IT services.
- Precious and semi-precious stones, ores and metal scraps, engineering goods, chemicals and machinery.