India and UK discussed the possibility of a new trade pact as Britain looks forward to its exit from the 27-nation European Union. Britain would lose access to the markets of the EU's other 27 nations if the two sides cannot reach to anagreement within a twoyear limit.
“We have made the decision that we will not be part of the structure of the European Union, but we've also made it very clear that we want to negotiate the maximum possible open trade relationship with the European Union,” said the chancellor, Philip Hammond.
In 2014-15, UK was placed 18th in the list of India’s top 25 trading partners and it gained the place for one of the major trading partners of India. For the past 10 years, UK remains as one of the main G20 investor in Indiawhereas India is the third biggest investor in the UK.
“We have continued to consolidate past success and to identify new areas where we can work together over the next couple of years, preparing for the point where Britain leaves the EU and is able to engage with Indian colleagues in a deep discussion about a future FTA between the UK and India,” said the finance minister, ArunJaitley. Further to this he also added that a formal dialogue on a possible bilateral trade agreement can start only after the completion of Brexit, which is expected to take about two years.
Chancellor Philip Hammond was in Delhi for the 9th UK-India Economic and Financial Dialogue. During this, ArunJaitley and Philip Hammond discussed various sides of the bilateral relationship including a possible post-Brexit trade deal.
Both the countries also agreed to set up a 240-million-pound fund which is called Green Growth Equity Fund. With an investment of £120 million from each government, this will aim to increase £500 million for Indian infrastructure projects.The fund will focus early investments on India’s rapidly growing energy, renewables market and finance clean energy projects.
As the Britain prepare to leave the European Union, it is more important than ever that they reinforce their connection with India,one of the world’s leading economies.
April 12, 2017