The British government announced a trade and investment partnership with India ahead of the bilateral summit between the UK Prime Minister Boris Johnson and his Indian counterpart Narendra Modi. The partnership worth GBP 1 billion will be part of an Enhanced Trade Partnership (ETP) that aims to address the market access barriers between the two countries.
The ETP will be signed off formally during the virtual meeting between the two leaders. The signing of the ETF also signals the intent by the two countries to work out a comprehensive Free Trade Agreement (FTA) while doubling the UK-India trade value by 2030.
Prime Minster Boris Johnson said, “Like every aspect of the UK-India relationship, the economic links between our countries make our people stronger and safer.”
The latest development will redefine India’s trade policy with the UK. The partnership will oversee the creation of more than 6,500 jobs in the UK and investments to the tune of GBP 533 million in sectors like health and technology.
Included in the trade deal were 1,000 new jobs at the Indian technology firm, Infosys, an investment by Serum Institute of India worth GBP 240 million for the production of vaccines and the lowering of non-tariff barriers on fruit and medical supplies.
The agreement between the two nations will create a huge opportunity for British businesses to export their goods and services to India. A future deal with an FTA on the cards will not only generate jobs but also boost their respective economies by lowering or doing away with present tariffs and trade barriers.
Looking past the economic ramifications, there is also a deepening commitment towards the educational sector. The process of granting the UK’s higher educational qualifications recognition is currently underway, which will translate to an increased student flow as well as knowledge and skill transfer between the two countries.
This partnership will also function as the cornerstone for a much more comprehensive deal in the future which may see the UK and India working on visa and migration policies.
10 Downing Street said that the proposed trade deal would result in the creation of a market bigger than the EU and the US combined and would be the largest market the UK has concluded a trade deal with till-date.