India, Britain Close to Sealing Free Trade Deal
The joint statement revealed that India would explore the possibility of Indian companies directly listing on the London Stock Exchange
NEW DELHI: A Free Trade Agreement (FTA) between India and the United Kingdom (UK) is on the verge of being finalised, with India expressing optimism about ongoing negotiations to resolve differences concerning the proposed FTA. This development was conveyed through a joint statement issued following the conclusion of the 12th annual India-UK Economic and Financial Dialogue, co-chaired by Union finance minister Nirmala Sitharaman and her UK counterpart, Chancellor of the Exchequer Jeremy Hunt, on Monday.
Earlier in the day, the India-UK Economic Financial Dialogue took place in New Delhi, addressing a range of issues encompassing macroeconomics, financial services, trade, infrastructure, investments, and green financing. After the meeting, both India and the UK reiterated their commitment to swiftly conclude the FTA between the two nations.
In a press conference following the joint meeting, Hunt indicated that progress was being made toward finalising an FTA deal. He stated, "The next step for this is a comprehensive FTA and bilateral investment treaty, and I know discussions are ongoing as to how to finalise that as soon as possible."
Sitharaman echoed Hunt's sentiments and suggested that negotiations would continue to iron out differences related to the proposed FTA. She explained, "As you know, we agreed to have investment negotiations on FTA with the UK, which are running parallel to the goods and services trade negotiations. So, we will be looking at points of convergence, and if further discussions are required, we will hold them. Both sides are keen to conclude it as soon as possible."
Moreover, the joint statement revealed that India would explore the possibility of Indian companies directly listing on the London Stock Exchange (LSE). Sitharaman also highlighted the success of the India-UK Green Growth Equity Fund as evidence of the effectiveness of public-private partnerships in channeling sustainable finance on a large scale.
Sitharaman emphasised the potential for collaboration between the two nations in emerging technologies like artificial intelligence (AI), machine learning, and India's recently enacted Digital Personal Data Protection Act 2023. She stated, "There are ample opportunities for both countries to collaborate on secure and inclusive financial intermediation frameworks."
Hunt underscored the establishment of the Pensions and Insurance Partnership, initiatives for knowledge and expertise sharing, the new UK Infrastructure Financing Bridge, and the deepened partnership on India's developmental GIFT City. He added, "We can really support each other's plans to strengthen the relationship, and the next step is a comprehensive FTA and Bilateral Investment Treaty."
Sitharaman and UK Prime Minister Rishi Sunak had met at the G20 Summit on September 9 to discuss mutual interests and areas of collaboration to enhance bilateral relations between the two countries. Reflecting Hunt's sentiments, Sitharaman also mentioned, "Today we have also launched the UK-India Infrastructure Financing Bridge."
"It is a collaborative venture co-led by NITI Aayog and the City of London Corporation aimed at harnessing collective expertise in planning and implementing major infrastructure projects. We remain committed to collaborate, deliberate, and innovate to navigate the challenges and seize the opportunities that lie ahead for both nations," she concluded.