UK Government has launched a 14-week consultation to seek views from the public and businesses for a trade deal with India vide Press Release dated May 25, 2021. UK wants a deal that enhances the ease of doing business and trading with India’s £2 trillion economy and market of 1.4 billion consumers. UK seeks to remove tariffs of up to 150% on whisky and 125% on British-made cars.
The Consultation has been launched with an intention to accept diverse views and inputs from consumers and businesses across all sectors. This will help the Government to craft a deal that includes closer cooperation in future-focused industries such as science, technology and services, creating high-value jobs across the country. Formal negotiations are expected to begin later this year. UK intends to make it easier for services firms to operate in the Indian market, boosting the UK’s status as an international services hub. India’s growing middle-income population and highly connected youth will be the target consumers for the type of goods and services the UK excels in.
The consultation follows the Enhanced Trade Partnership (ETP) agreed at the virtual meeting between the Prime Minister and PM Modi on May 4, where they launched a ‘2030 Roadmap’ which will provide a framework for UK-India relations.
In the past, the trade between India and UK was around £23 billion in 2019, which both countries want to double by 2030. Nearly half a million jobs are supported across India and the UK through investments in each other’s economies. The Enhanced Trade Partnership creates immediate opportunities for British businesses in India across industries such as food and drink and life sciences by improving market access.
*Tanvi Singh, Editorial Assistant has put this story together.