India-UK FTA may be hassle free post Brexit: CII

The Dollar Business Bureau

With Britain’s exit from European Union (EU), a bilateral Free Trade Agreement (FTA) between India and the UK is likely to be hassle free, Confederation of Indian Industry (CII) revealed. A delegation of Indian industry leaders, headed by CII President Naushad Forbes, has visited the UK during July 5-7, 2016. The three-day visit is aimed at strengthening the UK-India economic relations.

According to CII Director General Chandrajit Banerjee, Brexit has opened up new opportunities. Now, it is easy for the country to negotiate an FTA with the UK at a bilateral level. This could be the best time for Indian industries to collaborate with Britain companies, as there is willingness from both the countries, he said. Indian firms invest more in the UK than in any other country of Europe, and the UK is third biggest foreign investor in the country.

Expressing similar views, Naushad Forbes, who is also the Co-chairman of Forbes Marshall Pvt Ltd said, Britain’s relation with India will continue even after its exit from the EU. India-UK economic relations will flourish in the coming years. The UK has participated in various economic activities of India including the industrial corridors, renewable energy programme and other science and technology aspects.

India is positioned as the fastest growing economy in terms of gross domestic product (GDP). The cooperation between the UK and India can be improved in sectors such as manufacturing, energy, infrastructure and technology. With the new reform policies like Make in India, Digital India, Smart Cities mission and Clean Energy, there are potential opportunities for the UK companies to increase the foreign direct investment (FDI) into the country.

Speaking about an FTA that had been stuck for more than nine years due to few areas of concern for India, Forbes said, these issues will not remain anymore in between India and the UK. This would be an agreement which was made in heaven for the country, he said.

UK Minister of State for Universities and Science Jo Johnson said that the FTA between the UK and India has suffered several pauses in making progress. He hoped that a better bilateral trade agreement would enable faster development. He assured the Indian industry against any fear over business environment in the UK post-Brexit.