India-UK deal to fire up goods trade 2-3x in 10 years
India has the "flexibility and ability" to significantly reduce its tariffs in a free trade agreement (FTA) with the UK and is actively negotiating a social security agreement with Britain, commerce and industry minister Piyush Goyal said Monday, even as he pitched for a more liberal visa regime for businesses and professionals to promote bilateral trade and investments between the two sides.While announcing the resumption of negotiations for the proposed FTA with UK secretary of state for business and trade Jonathan Reynolds, he also said that India and Britain will aim to more than double bilateral trade in a decade.
Goyal insisted that India has "never ever" discussed immigration in any FTA negotiations.The negotiations are on three different fronts - FTA, Bilateral Investment Treaty (BIT) and a social security pact called Double Contribution Convention Agreement.In November last year, Prime Minister Narendra Modi had met his UK counterpart Keir Starmer on the sidelines of the G-20 summit. The two leaders had then agreed to resume FTA negotiations.On business mobility, Goyal said there was a need for faster and more liberal visa issuance to expand trade and investment between India and the UK clarifying that business visas are part of the FTA discussions whereas immigration is not on the agenda. Under the pact, he said, the two countries are opening up services in a "big way" and economies to attract more investments."If we both wish to expand our trade and investments, obviously we must be faster and more liberal in our issuance of visa," Goyal said.On this, Reynolds said that the UK welcomes "the huge and important relationship we have with people coming from India to UK, whether to study, be part of the businesses, and obviously business mobility is a separate issue to immigration."Social security pact, BITIndia is negotiating a social security agreement with the UK. Called the Double Contribution Convention Agreement that would help avoid double contributions to social security funds by Indian professionals working for a limited period in Britain. Goyal said that to bring balance in the opportunities and benefits for both countries, India had flagged the issue of giving attractive services offer in return for an attractive social security or a totalisation agreement from the UK around two years ago.On the UK's expectations from India's model BIT, he said it is premature to comment. "We have investments on both sides. Around half a million jobs were created out of Indian investments in the UK," he said.FTATerming the pact "pathbreaking," Goyal said it would provide huge opportunities to grow "our current $20 billion bilateral trade in merchandise to probably 2 or 3x in the next 10 years".On the deadline to conclude the negotiations, he said it's never "too early nor too late" to conclude a good agreement as these pacts are for a long-term future."One has to crystal gaze may be 20-30-50 years into the future and make a robust agreement which is a win-win situation for both sides and therefore we should not rush into things, but it's always good to conclude fast. So, we will have speed but not haste," he said.As many as 14 rounds of negotiations have taken place between the two sides so far. Trade between India and the UK rose to $21.34 billion in FY24 from $20.36 billion in FY23.Goyal indicated that many of India's current tariffs are in place to protect the country from non-market and non-transparent economies. However, he said that both India and the UK are more flexible and willing to significantly reduce tariffs to enhance business competitiveness between the two nations.
Goyal insisted that India has "never ever" discussed immigration in any FTA negotiations.The negotiations are on three different fronts - FTA, Bilateral Investment Treaty (BIT) and a social security pact called Double Contribution Convention Agreement.In November last year, Prime Minister Narendra Modi had met his UK counterpart Keir Starmer on the sidelines of the G-20 summit. The two leaders had then agreed to resume FTA negotiations.On business mobility, Goyal said there was a need for faster and more liberal visa issuance to expand trade and investment between India and the UK clarifying that business visas are part of the FTA discussions whereas immigration is not on the agenda. Under the pact, he said, the two countries are opening up services in a "big way" and economies to attract more investments."If we both wish to expand our trade and investments, obviously we must be faster and more liberal in our issuance of visa," Goyal said.On this, Reynolds said that the UK welcomes "the huge and important relationship we have with people coming from India to UK, whether to study, be part of the businesses, and obviously business mobility is a separate issue to immigration."Social security pact, BITIndia is negotiating a social security agreement with the UK. Called the Double Contribution Convention Agreement that would help avoid double contributions to social security funds by Indian professionals working for a limited period in Britain. Goyal said that to bring balance in the opportunities and benefits for both countries, India had flagged the issue of giving attractive services offer in return for an attractive social security or a totalisation agreement from the UK around two years ago.On the UK's expectations from India's model BIT, he said it is premature to comment. "We have investments on both sides. Around half a million jobs were created out of Indian investments in the UK," he said.FTATerming the pact "pathbreaking," Goyal said it would provide huge opportunities to grow "our current $20 billion bilateral trade in merchandise to probably 2 or 3x in the next 10 years".On the deadline to conclude the negotiations, he said it's never "too early nor too late" to conclude a good agreement as these pacts are for a long-term future."One has to crystal gaze may be 20-30-50 years into the future and make a robust agreement which is a win-win situation for both sides and therefore we should not rush into things, but it's always good to conclude fast. So, we will have speed but not haste," he said.As many as 14 rounds of negotiations have taken place between the two sides so far. Trade between India and the UK rose to $21.34 billion in FY24 from $20.36 billion in FY23.Goyal indicated that many of India's current tariffs are in place to protect the country from non-market and non-transparent economies. However, he said that both India and the UK are more flexible and willing to significantly reduce tariffs to enhance business competitiveness between the two nations.
economictimes
