Transformational growth must be the defining objective of the India-UK Free Trade Agreement (FTA), Union Commerce and Industry Minister Piyush Goyal said on Friday, urging businesses in both countries to look beyond incremental gains and leverage the pact to unlock new opportunities across sectors.
Goyal, who is on a three-day visit to the United Kingdom, addressed business leaders at a plenary session organised by the High Commission of India in London ahead of the implementation of the Comprehensive Economic and Trade Agreement (CETA), which comes into force on July 15.
Interacting with members of a Federation of Indian Chambers of Commerce and Industry (FICCI)-led business delegation, the minister highlighted opportunities in sectors including advanced manufacturing, consumer goods, renewable energy, healthcare and tourism.
“Collaborations, cooperations, partnerships will be, in my humble opinion, the right way to come in quickly for both British businesses and Indian businesses,” Goyal said, encouraging companies to work together to accelerate market access and investment.
Calling for greater ambition, he said international trade typically grows at only 4-6 per cent annually and warned that India should not settle for such modest targets.
“Transformational growth and entry into hitherto uncharted territory should also be a prime focus,” he said, adding that India must live up to growing global confidence in its economic potential.
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The minister also highlighted the benefits of the Double Contribution Convention (DCC), which will take effect alongside the CETA on July 15. Under the agreement, employees on temporary work assignments of up to five years in either country will be exempt from making social security contributions in the host nation.
Explaining the benefits for Indian professionals in the UK, Goyal said eligible workers could instead channel those savings into their Employees' Provident Fund accounts in India, where they would earn tax-free interest while strengthening their social security.
Describing the trade agreement as much more than a pact on tariffs and rules of origin, Goyal said the CETA represented a broader framework to deepen a bilateral trading partnership currently estimated at around £48 billion annually.
During the event, the minister launched several reports, including the Confederation of Indian Industry's Indian Roots, British Soil, which chronicles a decade of Indian investments in the UK. Reports by the UK India Business Council, ratings agency CareEdge and FICCI on various aspects of bilateral economic cooperation were also unveiled.
Goyal also criticised global credit rating agencies, saying they had failed to adequately recognise India's strong economic fundamentals and growth prospects, while praising CareEdge for what he described as a more objective assessment.
Earlier in the day, the minister said he held "meaningful discussions" with UK Business and Trade Secretary Peter Kyle on expanding bilateral economic cooperation, reaffirming both countries' commitment to promoting innovation, investment and sustainable growth.
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