Negotiations for the sixth round of Free Trade Agreement (FTA) between India and UK take off as Trade Secretary Kemi Badenoch arrives in New Delhi on Dec 12, 2022. This round of negotiations takes place under the new leadership of the UK Prime Minister Rishi Sunak. Also, big UK brands including Tide, Pret A Manger and Revolut will announce their expansion plans in India.
According to an official statement from the British High Commission in New Delhi, this will be the first in person meeting of Badenoch with her counterpart, Indian Minister of Commerce and Industry Piyush Goyal. And the aim is to strengthen bilateral relations between the two countries and also give a boost to talks on the trade deal the two countries are negotiating.
Significance of the visit
The visit of the UK Trade Secretary also enforces that country’s tilt towards the Indo-Pacific which is home to some of the fastest growing economies in the world.
Ahead of the sixth round of negotiations which will be throughout the week, the visiting Trade Secretary will address both teams of senior negotiators.
More about the formal negotiations
This will be the first formal round of talks since July. And to work towards a deal to not only cut tariffs but to also open opportunities for UK services like legal and financial. This will make it easier for the British businesses to sell to an economy such as financial and legal. According to the statement, this will make it easy for British businesses to sell to an economy which is set to be the world’s third largest by 2050.
The Trade Secretary is scheduled to meet with business leaders to understand their needs for a modern UK-India Trade relationship. And this will include a meeting with envoPAP – this is a UK company which is investing over £10 million in India, to construct a plant producing Fairtrade packaging and paper products.
Ahead of the visit she said that the two countries have come to the table with high ambitions and willingness to work together towards a deal which is mutually beneficial.
The two countries India and the UK are the 5th and the 6th biggest economies in the world and are in pole position to have a deal that will create jobs, encourage growth and boost the £29 billion bilateral trading relationship.
British companies like Pret A Manger and fintech pioneers Revolut and Tide are among those who are expanding their footprint in India.
In early 2023, British coffee and sandwich retailer Pret will open its first branch in Mumbai as part of its plan to open 100 branches across the country and this will be followed by a franchise partnership with Reliance Brands.
Benefits of the FTA for the UK and India
Businesses like these are expected to benefit from increased opportunities, more affordable cross-border trade and reduction in red tape.
Tide, this is the UK’s leading SME-focused business financial platform. As part of its expansion plan for the Indian market, last week it announced the launch of the Tide app, which is its market entry product.
After investing $46 million in India, British banking services app Revolut has recently opened its head office in Bengaluru. This company has created around 300 Indian jobs and in the coming years has plans to create hundreds more.