With UK’s Prime Minister Boris Johnson, in all likelihood, visiting India early next year, the officials of commerce ministry are working on a possible early harvest deal – if not a full free trade and investment pact – with the UK.
As per media reports, officials are positive of clinching a deal since ‘both sides are open to negotiations and neither are burdened by the failed talks we had with the EU’.
It can be very helpful to Indian apparel export industry also as UK is the third largest export destination for them.
Garment exporters are keen on the trade deal as they fear India will lose out to rivals like Bangladesh and Vietnam without a trade pact. Exporters have requested the Government in this regard time and again.
Indian apparel industry has tariff disadvantage of 9.6 per cent compared to those from Bangladesh due to a tariff concession that the nation and 46 others enjoy from the EU.
Britain similarly wants larger access to India’s financial market and wants India to continue using UK as the first choice for Indian companies raising global finance.