British Deputy High Commissioner Christina Scott on Thursday said that negotiations for an India-UK Free Trade Agreement (FTA) are going on full swing even as she noted that the agreement would become a reality only if the right sort of package benefitting the companies of both sides are developed.

“Conversations are going on 24x7 at the moment. I would ask you all to keep your fingers and toes crossed in the coming weeks”, Scott said at an event where the ‘Britain Meets India 2023’ (BMI) report developed by Grant Thornton Bharat was released.

“But whether or not we get the FTA, the key thing that is not going to change is the level of engagement that already exists, the height of the ambition that the governments of the two countries want to thicken and develop and grow,” she said.

Doubling bilateral trade

She highlighted that current bilateral trade between India and UK stood at £ 38 billion and both countries have big ambition to double that by 2030.

“Part of our ambition of getting to our doubling target is hopefully the agreement of FTA. That will only be happening if the conditions are right and if we get the right sort of package that is going to benefit the UK Companies and also going to benefit the Indian companies as well”, she said.

Indian companies are currently second largest investors by value and volume into the UK.

“There is tremendous depth in our business to business relationship which is pinned by incredible people to people relationship,” Scott added.

India ideal for UK firms

Speaking on the occasion, Gaitri Issar Kumar, former High Commissioner of India to the UK said that the FTA talks — which are currently on at London—are “near the summit”, based on what she had heard. 

“The Indian side has gone beyond the normal template and is keen to make it a very comprehensive FTA”, she added.

India and the UK are also negotiating a Bilateral Investment Treaty . India is also negotiating a FTA with the European Union, Kumar added.

One of the significant takeaways of this year’s BMI report is the contribution of UK MSMEs in playing a significant role in the economic relationship. “Our analysis shows that two thirds (68%) of UK companies in India are MSMEs”, said Pallavi Joshi Bakhru, Partner and India-UK Corrudor Leader, Grant Thornton India.

There is also an uptick on the number of UK companies in India, with higher combined turnover. This is a reflection of the Indian economy and the opportunity that India offers, the report added.

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