India-UK FTA: Positive Talks, Conclusion Soon

London, Apr 9 (PTI) Finance Minister Nirmala Sitharaman on Wednesday wrapped up the 13th Ministerial India-UK Economic and Financial Dialogue (EFD) with her British counterpart, Chancellor Rachel Reeves, on a note of “positivity and eagerness” to conclude the bilateral Free Trade Agreement (FTA) negotiations soon.

The annual dialogue, held at the London Stock Exchange, covered a broad range of issues which the UK Treasury said resulted in a GBP 400 million of trade and investment boost involving Indian firms such as Paytm and Mphasis unveiling investment plans for the UK market.

A resulting joint statement from the EFD sets out plans to generate growth, improve bilateral financial services ties and deepen policy cooperation on the UK Industrial Strategy, tax, sustainable finance and illicit finance.

Areas for collaboration on defence were also identified, with the finalisation of the India-UK Defence Industrial Roadmap set to strengthen ties between industrial sectors and integrate supply chains.

“I value this dialogue very much because we saw that there was a lot of point-to-point discussion on specific items of interest, both for India and in the UK,” Sitharaman told reporters after the EFD.

“The other point is the Free Trade Agreement (FTA) dialogue, negotiations for which are going on. There is a great sense of positivity and also eagerness and a dedication to have this conclude sooner rather than later, from both sides.

“So, we are happy to end today's visit with a sense of hope and possibility… the spirit with which the engagement has happened today, particularly as regards the investment treaty, is in that direction,” she said.

“We want to conclude it, get over the difficulties that we've had on just a few matters, nevertheless we'll be talking about it, and we will certainly conclude it is my expectation,” she added.

The Chancellor reiterated the UK government's commitment to continue to make “rapid progress in completing a deal”, recognising the importance of trade and investment in fostering economic growth for both nations.

“What we're trying to do in our Free Trade Agreement is to reduce tariff and non-tariff barriers that suppress trade between countries. I believe that free and open trade benefits countries, as does free flows of investment, and that's why we are seeking with India to reduce those barriers,” said Reeves.

“That said we're not waiting for a Free Trade Agreement to boost trade and investment between our countries as seen in today's announcements of significant investment both ways from Indian firms into the UK and vice versa,” she said.

The India-UK EFD joint statement is designed to unlock cooperation across a range of business sectors, including defence, financial services, education and development, and strengthen governmental collaboration across growth, economic resilience and international financial issues.

According to an official statement, the total commercial package resulting from the EFD is made up of new announcements worth GBP 128 million in export deals and investments, as well as recent deals worth GBP 271 million.

“A part of the conclusion of the Economic and Financial Dialogue today is the creation of more UK university facilities in India so that young people can get degrees from those universities without having to come to the UK for their full studies,” said Reeves.

Among some of the other key announcements on the back of the dialogue included continued India-UK collaboration as co-chairs of the G20's Framework Working Group and building on the success of the UK-India Green Growth Equity Fund (GGEF).

“Through deepened partnership, the governments and regulators from both countries can help to build an environment which delivers real benefits to their financial markets and economies," said David Schwimmer, CEO of the London Stock Exchange Group, which hosted the dialogue.