NEW DELHI: With Liz Truss taking office as the new prime minister of the UK, India's commerce and industry minister Piyush Goyal has voiced hope for an early conclusion of negotiations for a free trade deal with Britain that will strengthen the two countries' economic connections.
When speaking to members of the Institute of Chartered Accountants of India on Monday, Goyal said: "A few political changes may have delayed (conclusion of FTA negotiations) by a few weeks, but I do hope (that) with...Liz Truss assuming prime ministership of the UK, we may now be able to make up for some lost time (to conclude the FTA negotiations)" (ICAI).
Indian officials wanted to wrap up the trade deal negotiations by August 31; but, political circumstances in Britain might have caused the talks to drag a little. To increase bilateral trade and investments, both nations formally began negotiations for a free trade agreement (FTA) in January. It was started when Truss was the international trade secretary and Boris Johnson was the prime minister.
In such agreements, two nations also loosen rules for boosting investments and trade in services while also eliminating or drastically reducing customs charges on the majority of products exchanged between them.
We are further along in the FTA negotiations with the UK. We are aiming for an agreement between India and the UK within the next few months, perhaps by Diwali, and Miss Anne-Mary, who is currently the Minister of Trade and Investment, and I communicate frequently," Goyal added. India has emerged as one of the most alluring investment destinations in the world, as evidenced by the fact that developed nations and world leaders are working tirelessly to increase bilateral trade and investment agreements with India. Discussions are taking place over a number of products from India and the UK, including scotch and vehicles.
Ready-made clothing and textiles, diamonds, jewellery, engineering products, petroleum and petrochemical products, transportation equipment and components, spices, metal goods, machinery and instruments, pharmaceuticals, and marine products are among India's top exports to the UK.
Precious and semi-precious stones, ores, scrap metal, engineering products, professional instruments, non-ferrous metals, chemicals, and machinery are among the main imports. The UK is one of the biggest markets in Europe for Indian IT services in the services sector.
From USD 13.2 billion in 2020–21 to USD 17.5 billion in 2021–22, the bilateral trade grew. In 2021–22, India's exports totaled USD 10.5 billion while its imports totaled USD 7 billion.
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