Indian Economy News

India moves ahead with its UK, EU trade pacts

India is progressing ahead with discussions on two trade agreements, one each with UK and EU. Mr. Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, is in the UK to discuss progress on the trade talks, following his meeting with EU trade commissioner Mr. Valdis Dombrovskis, who said that the two partners will formally launch negotiations soon.

India has recently restarted entering bilateral deals and signed two trade agreements recently, one each with UAE and Australia. The next focus is on UK, with the UK Prime Minister Mr. Boris Johnson setting a Diwali (October 2022) deadline for the comprehensive trade discussions (including digital and other areas) to be concluded. Managing Director of the UK India Business Council (UKIBC) Mr. Kevin McCole said that there were high hopes that the UK will lower textile tariffs, increasing India’s competitiveness with Bangladesh, Sri Lanka, and Vietnam. From the UK perspective, expectations are lowering of tariffs on automobiles, alcohol, and Scotch, with levies of up to 150%.

The UK and EU trade deals, as well as those with Canada and Israel, are currently being negotiated. Switzerland has also proposed that delayed discussions with the European Free Trade Association (EFTA) be restarted. EFTA also comprises Norway, Iceland, and Liechtenstein, in addition to Switzerland. These trade agreements are expected to boost trade and drive investments into the Indian economy.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.