India and UK look towards improving trading relations at Cabinet level summit
On Friday, India and the United Kingdom acknowledged the necessity to make better the trading relations between them and agreed upon exploring opportunities and expanding bilateral trade relationships. The first step to this was amplification of trading partnership, as a part of the Free Trade Agreement( FTA).
At the 14th Joint Economic and Trade Committee(JETCO), helmed by UK’s International Trade Secretary Liz Trussand Minister Piyush Goyal, the countries agreed upon expanding the potential of their respective digital economies inclusive of data regulation and interoperability.
At the summit, it was agreed upon that the new global tariff of the UK will incur a benefit of £40 million per year for Indian exporters.
India now happens to be the second largest investor in UK’s economy, with the trade between them amounting to £24 billion as of last year.
Elimination of barriers to trade has been underway, since both countries culminated a Joint Trade Review in 2018.
Truss said,”My first JETCO with India has been an opportunity to take stock of progress made so far between our countries and look at barriers preventing our trading relationship from reaching its full potential. India is an incredibly important partner for the UK. As one of the world’s largest economies and democracies, it is a powerhouse that will play a major role in shaping the 21st century. Today, we agreed to look in detail at a framework for a deeper relationship. At this stage, we want to keep all options on the table, including the possibility of a free trade agreement at some point in the future.”
Writer – Arunima SenGupta