India and the United Kingdom (UK) are making progress to have a free trade agreement (FTA) but a new deadline for it will depend on talks, said commerce secretary Sunil Barthwal on Thursday.
The two countries started negotiating in January this year to boost trade and investments, but are set to miss the Diwali deadline for an agreement as they are yet to iron out differences in providing greater market access of certain goods and services.
“So, we are moving forward very well and we expect that soon we will be able to reach an agreement,” Barthwal told reporters at the sidelines of the CII National Exports Summit in Delhi.
Barthwal said that negotiators have finalised most chapters in the FTA and some aspects remain.
‘Business Standard’ reported on Monday that the FTA negotiations may spill over to early mid-next year due to contentious issues. The political crisis in the UK, coupled with the fear of a recession due to slower-than-expected economic growth may play a role in deferring the pact.
The UK is also a key investor in India. New Delhi has attracted foreign direct investment of $1.64 billion in 2021-22. The figure was about $32 billion between April 2000 and March 2022.
Barthwal, in a public address at the CII event, said that there is scope for India to double its exports and enhance its contribution in the overall global trade ecosystem.
“A coherent trade strategy that promotes greater integration and participation of India into Global Value Chains is an imperative. Such a strategy will be crucial to achieve the overall target of achieving $2 trillion overall exports target by 2030,” he said, adding the necessity for India to leverage its strength in the services sector.
The strategy for export promotion will be more specific and will include strengthening data and analytics, increased interaction with exporters, and country- and sector-related plans. “Our aim is to make districts manufacturing hubs through enhanced export promotion,” he said.
