India discusses FTA with UK and UAE to enhance trade and investment: Piyush Goyal

India is fast progressing in discussions on different Free Trade Agreement (FTA) with countries including UK and UAE to further enhance trade and investment ties, says Commerce and Industry Minister Piyush Goyal. Under an FTA, two trading partners reduce or eliminate customs duties on the maximum number of goods traded between them.

Goyal, while addressing the JITO Trade Mahakumbh, said India is engaging for such pacts with economies having transparent rule of law with whom India can have confidence that it will get a fair deal and reciprocal benefits. “We are fast progressing in our discussions with the UK, with the UAE and other Gulf Cooperation Council (GCC) countries. Canada and Australia are really on a fast track,” the minister said.

For India, FTAs with the United Kingdom and the European Union have the potential of integrating it with the dominant global value chain of trade, and for the UK and the EU, FTAs with India would not only provide them an enhanced access to one of the largest and fastest growing markets, as well as manufacturing hubs in the world, ensuring supply chain resilience. It would also enhance their economic and political influence in the Indo-Pacific region.

It should be noted that majority of India’s trade is being done in terms of the World Trade Organization’s (WTO) multilateral most-favored nation principle and or under the allowed exceptions, rather than under its FTAs. The reason behind this is that most of the FTAs to which India is currently a party to are with developing countries and or their blocs, and competing Asian peers.

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Goyal also highlighted that he recently held discussions with the USA’s Charge’d Affairs in Delhi Atul Keshap, and both agreed to aspire for a $500 billion trade between the countries at the earliest possible time. He said the world is looking for a trusted partner, and that partner is India’s business community. The minister added that whether it is FDI, forex reserves, foodgrain reserves, agriculture production or manufacturing – all sectors are on a growth path.