New Delhi [India], November 22 : After UK PM Keir Starmer announced the resumption of talks on signing a Free trade agreement (FTA ) between India and UK, Richard Heald, Director of the UK India Business Council (UKIBC),said that the FTA holds transformative potential for businesses and bilateral trade.
In an exclusive interview within New Delhi on Thursday, Heald stated, "If you look at those companies who are not here (India), then the FTA will make a difference. It (FTA) will make it easier and more comforting to come here to India and to get embedded into the economy, be that through a joint venture or be it actually through investment directly."
Heald pointed out the robust two-way investment flows between the two countries, saying, "Look at the Foreign Trade Investment (FTI) that UK invests in India, and look at the amount of FTI that the Indians are investing in the UK. And that's for commercial reasons. It's businessmen who are making those investments in each other's country because they see a need to increase the level of cooperation and collaboration for the betterment of both countries."
The extensive scope of the India-UK Free Trade Agreement (FTA), spanning 26 to 28 chapters, has necessitated careful deliberation.
Heald said, "Both countries want a good, beneficial agreement. And it's a very extensive. It covers 26, 28 chapters. So a lot of things in it. There's a process. Four or five chapters still to be negotiated. I believe the negotiations will start next year."
Speaking on policies to boost innovation and technology collaboration, Heald acknowledged initiatives supported by both governments.
He stated, "We need to be more clear on how we articulate that level of support and what those opportunities are. There was one point that actually Minister Piyush Goyal mentioned in his address and that was the necessity for companies who want to get involved in India to come to India to meet with people, to understand the operating environment, and to do due diligence. You've got to do that due diligence in order to have the totality of what the opportunities in the picture is."
Heald identified emerging areas for bilateral cooperation, including artificial intelligence, healthcare, defence, and agritech.
He said, "The UK government, is very good at consulting businesses, as the Indian government is good in consulting Indian businesses and we go in and talk to the Indian government as well, because we'd like both sides to be aware of what each other's businesses are thinking."
He added, "We were looking at what are the nodal points in terms of finance, equity, private equity or venture capital looking at in relation to technology startups. That was the key area that we looked at. And we looked at other areas of where there are opportunities, like in health care and defence, in agri-tech, etc. Also looking at the facilitation mechanisms to make those two come together."
Heald mentioned the Technology Securities Initiative (TSI), which was signed in July, and said, "Other areas, Agritech. So these are key areas where we have capabilities in the UK, and India has needs. And there is a mutuality in that."
Heald commended India's economic resilience and reform-driven investment climate.
He said, "You have one of the highest growth rates in the world. I mean, if you look at developed nations, the GDP growth is way below what it is in India. There is political stability in terms of continuity, in terms of the economy, and that gives people confidence in order to look and take that first step in order to come to India."
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