India-UK FTA to boost manufacturing, agriculture, services: RBI Governor

With multilateralism slowing, India is pursuing new trade pacts, including with the US and EU. Nearly 95 per cent of Indian farm goods will get duty-free UK access

Mumbai: The India-UK Free Trade Agreement (FTA) should help various sectors in the country, including manufacturing and the services industry, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Friday.

According to the RBI chief, multilateralism has taken a back seat, and India now requires more such free trade agreements with other countries as well. “The UK FTA is the way going forward, because unfortunately, multilateralism appears to have taken a back seat,” Malhotra said at an event here, adding that trade negotiations with the US are also in the advanced stages.

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The Central bank Governor also acknowledged that there are many more trade pacts in different stages of negotiations.

In an interaction with IANS in London, Union Commerce and Trade Minister Piyush Goyal said that discussions are underway to improve trade relations with several countries, as India signed a landmark FTA with the UK, opening billions of dollars worth of opportunities for both countries.

“Very good talks are going on with New Zealand, Oman, Chile, Peru, and the European Union. And on the bilateral trade agreement (BTA), good discussions are also underway with the United States. I firmly believe that all these negotiations will lead to positive outcomes,” the Commerce Minister said.

India and the US teams have concluded the fifth round of talks for the proposed bilateral trade agreement (BTA) in Washington, DC. The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will officially come into effect on October 1, which would facilitate the creation of 1 million direct jobs in India.

The India-UK comprehensive economic and trade agreement (CETA) has been termed a “historic leap” that will empower workers, farmers, MSMEs and startups across the country.

Malhotra further said the UK FTA will help multiple sectors of the Indian economy. Agriculture is another big winner under the deal, with nearly 95 per cent of Indian farm products gaining duty-free access to the UK.