Transformational growth prime focus of India-UK FTA: Piyush Goyal
The minister is in the UK on a three-day visit to review both countries’ preparedness for the implementation of the Comprehensive Economic and Trade Agreement (CETA), which will enter into force on July 15.
During an interactive event organized by the Indian High Commission in London, Goyal heard from members of the delegation led by the Federation of Commerce and Industry of India about sector-wide opportunities offered by CETA, such as advanced manufacturing, consumer goods, renewable energy, healthcare and tourism.
“Collaborations, collaborations and partnerships would, in my humble opinion, be the right way for both British and Indian businesses to step in quickly,” Goyal told the meeting. he said.
“It will make your journey faster; not necessarily, of course, it’s your choice. If you’re confident, you can do it on your own, which is great. But it can also be a way to make your journey quicker.”
“International trade normally grows at 4 to 6 or 5 percent. If that is the level of ambition we hold as a nation, it will be a total betrayal of the trust the world has in us today… the trust the world has in what India can deliver, what India has to deliver.” he said.
On the Double Contribution Agreement (DCC), which will come into force alongside CETA next month, the minister informed businesses that it will apply to temporary workers in both countries for a period of five years. Indians who come to work here with temporary work permits for up to five years can save 25 percent of their savings directly. (Currently) The 12.5 percent the employee pays is the 12.5 percent the company pays, otherwise it would be lost. It can now be paid into your Provident Fund account in India and of course 8.25 percent interest comes tax-free; “There is not a bad return on sales and it also provides social security for your family,” he said.
He reiterated that CETA is not just about tariffs and rules of origin, but is a much more comprehensive opportunity within the bilateral trade partnership estimated at around £48 billion annually.
“Transformational growth and entering hitherto unexplored territory must also be a key focus of this team (of businesses), and the message you receive when you return home and the message my British brothers in this room will take to your companies and your colleagues here will be crucial,” he said.
The minister also released a number of reports at the event, including the Confederation of Indian Industry’s (CII) ‘Indian Roots in British Soil’ report, which tracks the journey of Indian investment in the UK over the last decade.
The UK India Business Council’s (UKIBC) guidance on CETA implementation, a report by India’s rating agency CareEdge and a report by FICCI on the development of the bilateral partnership were among those presented at the plenary.
“Until now, there were only Fitch, Moody’s and Standard & Poor’s and I can say on record that they have been unfair to India. They have not recognized India’s growth story, India’s strong fundamentals, India’s capacity and future, and have not captured that as much as a rating agency should. I will not give any justification for this, but I express my surprise.
“I think CareEdge did its job in a very objective way. They evaluated economies that were much weaker than India, had no future, and that other organizations had given better ratings than India for reasons best known to them,” Goyal said.
During a discussion on India’s immense tourism potential, the minister proposed channeling government funds into a public-private partnership from an export promotion perspective to attract higher tourism figures.
“We really need to work on increasing the numbers. We also need to work on how we can attract high-value tourism… Organizing board meetings (of global companies) to see India’s evolution. Seeing is believing,” he said.
The Minister also encouraged small and medium enterprises (SMEs) to participate enthusiastically in trade delegations and 500 such initiatives have been planned for Indian businesses across the world.
Earlier, Goyal said he had “meaningful discussions” with his British counterpart, Commerce and Trade Minister Peter Kyle, to explore new opportunities to deepen bilateral economic and commercial cooperation.
“The meeting reflected the warmth, trust and forward-looking vision that continues to define our bilateral partnership… we are committed to fostering an ecosystem that fosters innovation, investment and holistic growth for both countries,” he said.
