UK, India to boost partnership; free trade agreement talks on

Published onJan 14, 2022, 11:03 IST

The United Kingdom on Thursday announced that talks over a free trade agreement (FTA) with India have commenced.UK's International Trade Secretary Anne-Marie Trevelyan met with India's Commerce Minister Piyush Goyal to begin negotiations on the agreement.The first round of formal talks is scheduled to begin next week, making it the quickest start of formal negotiations after a launch.

Context

Why does this story matter?

• The FTA would take the long-standing relationship between both the countries to the next level, said UK Prime Minister Boris Johnson.
• By 2035, the agreement may increase bilateral trade by up to Rs. 2.8 trillion per year.
• The deal would also be a "big step forward" in the UK's post-Brexit goal to refocus trade on the Indo-Pacific—home to 50% of global economic growth.

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British businesses, workers, consumers to benefit: Johnson

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"A trade deal with India's booming economy offers huge benefits for British businesses, workers, and consumers," said Johnson.Financial services, Scotch whiskey, and cutting-edge renewable technologies are among the key sectors expected to benefit, he said."We are seizing the opportunities offered in growing economies of the Indo-Pacific to cement our place on the global stage and deliver jobs and growth," said Johnson.

Trade partnership

India to become 3rd-largest economy by 2050: UK Secretary

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Trevelyan met Goyal in New Delhi for the 15th Joint Economic and Trade Committee (JETCO) meeting on Thursday to discuss the UK-India Enhanced Trade Partnership's development."A deal with India is a golden opportunity to put UK businesses at the front of the queue as the Indian economy continues to grow," Trevelyan said.She said India will be the world's third-largest economy by 2050.