London: The India-UK Free Trade Agreement ( FTA) is truly a game changer in trade, investment and services sectors, Commerce and Industry Minister Piyush Goyal said on Thursday.
The minister said it was "remarkable" that a journey which started over two decades ago culminated with a historic prime ministerial visit and in a very "fair, equitable and balanced agreement" that ensures the possibility to double India-UK trade to USD 120 billion in the next five years.
"Truly this is going to be a game changer, in trade, in investments, in the services sector and help both India and the UK grow and our people benefit," Goyal told PTI soon after signing the agreement with his UK counterpart Jonathan Reynolds, witnessed by Prime Ministers Narendra Modi and Keir Starmer at Chequers in Buckinghamshire.
"Our farmers will get a lot of opportunities, because we can process those farm products and market them in the UK. Our MSME sector will get a plethora of opportunities in aircraft parts and auto components, various engineering products. Our textiles will see a massive spurt in demand, because now on a competitive basis, we will be right on top with zero duties," he said.
Whether it's leather, footwear, toys, furniture, pharma products, a very wide range of India's own strengths, which we are currently exporting in big measure across the world, will find markets in the United Kingdom, Goyal said.
He also highlighted the Double Contribution Convention (DCC), which has been agreed to be enforced alongside the FTA.
"Our people who come and serve in UK for short term, two years or three years, who today land up losing almost 25 per cent of their earnings in Social Security, which never gives them any benefit, will now have an opportunity under the DCC to pay this money into their provident fund account in India, and that money will be secure. That money will be giving them an over 8 per cent tax-free return and will become their pension and Social Security in the long run," he explained.
The minister noted that though the parliamentary ratification process in the UK will take some time, the signing process gives businesses certainty for the long run due to bipartisan support in Britain for the agreement.
"The UK parliamentary process will take a few months. The good part is that it has always had bipartisan support. It was largely negotiated when the Conservatives were in power, and today, with the Labor government, it has culminated into a robust and very fair and balanced agreement, and therefore, I think this will get cleared pretty quickly," Goyal said.
"Businesses will be already planning, because there's a stable and predictable environment. The Free Trade Agreement will be known to everybody, and businesses can start integrating their supply chains and can start planning the benefits of this agreement, planning their business growth because of this agreement. So, I think the work will start right away. The benefits will start accruing in a few months," he said.
At a personal level, the minister described the agreement as an "extremely redeeming and satisfying" moment that concluded with a great rapport with his UK counterpart.
He added: "I feel very humbled that Prime Minister Modi reposed confidence and faith in me to be able to conclude this agreement, which has been quite complicated.
"Many, many years have gone by. Talks have been on and off, but I feel very humbled by the experience. I feel very, very satisfied with the outcome, and I'm sure what started as a very difficult negotiation, but has concluded in a very friendly and very amiable relationship, will continue in the years to come to be a torch bearer for the progress and development of both countries."
The minister said it was "remarkable" that a journey which started over two decades ago culminated with a historic prime ministerial visit and in a very "fair, equitable and balanced agreement" that ensures the possibility to double India-UK trade to USD 120 billion in the next five years.
"Truly this is going to be a game changer, in trade, in investments, in the services sector and help both India and the UK grow and our people benefit," Goyal told PTI soon after signing the agreement with his UK counterpart Jonathan Reynolds, witnessed by Prime Ministers Narendra Modi and Keir Starmer at Chequers in Buckinghamshire.
"Our farmers will get a lot of opportunities, because we can process those farm products and market them in the UK. Our MSME sector will get a plethora of opportunities in aircraft parts and auto components, various engineering products. Our textiles will see a massive spurt in demand, because now on a competitive basis, we will be right on top with zero duties," he said.
Whether it's leather, footwear, toys, furniture, pharma products, a very wide range of India's own strengths, which we are currently exporting in big measure across the world, will find markets in the United Kingdom, Goyal said.
He also highlighted the Double Contribution Convention (DCC), which has been agreed to be enforced alongside the FTA.
"Our people who come and serve in UK for short term, two years or three years, who today land up losing almost 25 per cent of their earnings in Social Security, which never gives them any benefit, will now have an opportunity under the DCC to pay this money into their provident fund account in India, and that money will be secure. That money will be giving them an over 8 per cent tax-free return and will become their pension and Social Security in the long run," he explained.
The minister noted that though the parliamentary ratification process in the UK will take some time, the signing process gives businesses certainty for the long run due to bipartisan support in Britain for the agreement.
"The UK parliamentary process will take a few months. The good part is that it has always had bipartisan support. It was largely negotiated when the Conservatives were in power, and today, with the Labor government, it has culminated into a robust and very fair and balanced agreement, and therefore, I think this will get cleared pretty quickly," Goyal said.
"Businesses will be already planning, because there's a stable and predictable environment. The Free Trade Agreement will be known to everybody, and businesses can start integrating their supply chains and can start planning the benefits of this agreement, planning their business growth because of this agreement. So, I think the work will start right away. The benefits will start accruing in a few months," he said.
At a personal level, the minister described the agreement as an "extremely redeeming and satisfying" moment that concluded with a great rapport with his UK counterpart.
He added: "I feel very humbled that Prime Minister Modi reposed confidence and faith in me to be able to conclude this agreement, which has been quite complicated.
"Many, many years have gone by. Talks have been on and off, but I feel very humbled by the experience. I feel very, very satisfied with the outcome, and I'm sure what started as a very difficult negotiation, but has concluded in a very friendly and very amiable relationship, will continue in the years to come to be a torch bearer for the progress and development of both countries."
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