The India-UK FTA represents a historic milestone for both nations, Bharti Enterprises Chairman Sunil Bharti Mittal said on Thursday, noting that the agreement reflects a strong complementarity between the two sides.
Mittal, who is also the Co-Chair of the India-UK CEO Forum, said the deal lays down a clear roadmap and exuded confidence that the target set out of doubling bilateral trade is "absolutely achievable".
"This is a historic moment for both countries, it is rare to see two large economies coming together on a common platform, finding common ground and coming out with a win-win deal like the one which has been signed today...I personally believe that the ambition of doubling trade, both in goods and services, is absolutely achievable. And this is where the role of Indian and British industry will come into play," he told PTI.
The ground is laid and the roadmap is clear, Mittal said, adding that India-UK FTA brings to fore a "high sense of complementarity".
The telecom industry stalwart said the trade deal also offers big opportunities for small and medium enterprises in areas like footwear and leather products, while a three-year exemption on social security contribution would offer a big boost to Indian technology companies.
"We talk about two spectrums...in the hi-tech area, which is, let's talk about small nuclear reactors, so in the clean energy area, hypersonic missiles, drones, UAVs, other defence equipment, which is available in the UK, including the technologies and manufacturing units in very strong measure...I think this is one area of cooperation and collaboration.
"Plus India is opening up its public procurement to British companies, which is generally not the norm, and that will incentivise the British industries to come and set up a lot of their manufacturing activities in the country, in India," said Mittal, who led the delegation on behalf of CII.
India and the UK on Thursday inked a landmark free trade agreement (FTA) that will cut tariffs on British whisky, cars and an array of items, besides boosting bilateral trade. The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
The FTA is expected to benefit 99 per cent of Indian exports from tariffs and will make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket.
Further, Indian companies operating in the UK would not have to make social security contributions for up to three years for employees they move from India to support their operations. This is estimated to benefit over 75,000 Indian workers and over 900 employers as it exempts Indian professionals and their employers from these contributions in the UK for a stay of up to 36 months.
"I think this is a good balanced outcome, because if Indian professionals can come and work here for three years and then don't have to give the contribution here in the UK, but carry on doing it in India...that secures them, because when they go back home, at least their pie is safe.
"They can get benefits, their pensions, their insurance, all those things have not gone to waste. So, think, this is a huge advantage to IT/ITES companies which are working here in the UK...not just technology companies, but even other firms," he said.
On whether he sees India-UK FTA becoming a template for other trade deals currently being negotiated, including with the EU, Mittal replied in the affirmative.
"I think so...This should now focus everybody's mind on the EU. This is out of the way now. The EU should have a similar playbook now. There are a lot of similarities between the UK and the rest of Western Europe. I don't see any major differences between the negotiating tactics there," he said.
On whether he believes the UK trade deal could help drive reasonable tariff negotiations with the US, too, Mittal said that while the agreement does add strength, drawing comparisons may not be prudent.
"I think this does help...you put one more in the bag, and then go on and negotiate. This definitely adds strength to India's negotiating power. But let's not compare...US is a market set apart from the rest of the world. It is the largest market in the world...One will have to be careful...Indian industry will have to be protected...But, America, at the moment, the way it's going is less predictable than many other countries in the negotiations. So, we'll just have to wait and watch how things progress there," he said.
Mittal, who is also the Co-Chair of the India-UK CEO Forum, said the deal lays down a clear roadmap and exuded confidence that the target set out of doubling bilateral trade is "absolutely achievable".
"This is a historic moment for both countries, it is rare to see two large economies coming together on a common platform, finding common ground and coming out with a win-win deal like the one which has been signed today...I personally believe that the ambition of doubling trade, both in goods and services, is absolutely achievable. And this is where the role of Indian and British industry will come into play," he told PTI.
The ground is laid and the roadmap is clear, Mittal said, adding that India-UK FTA brings to fore a "high sense of complementarity".
The telecom industry stalwart said the trade deal also offers big opportunities for small and medium enterprises in areas like footwear and leather products, while a three-year exemption on social security contribution would offer a big boost to Indian technology companies.
"We talk about two spectrums...in the hi-tech area, which is, let's talk about small nuclear reactors, so in the clean energy area, hypersonic missiles, drones, UAVs, other defence equipment, which is available in the UK, including the technologies and manufacturing units in very strong measure...I think this is one area of cooperation and collaboration.
"Plus India is opening up its public procurement to British companies, which is generally not the norm, and that will incentivise the British industries to come and set up a lot of their manufacturing activities in the country, in India," said Mittal, who led the delegation on behalf of CII.
India and the UK on Thursday inked a landmark free trade agreement (FTA) that will cut tariffs on British whisky, cars and an array of items, besides boosting bilateral trade. The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
The FTA is expected to benefit 99 per cent of Indian exports from tariffs and will make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket.
Further, Indian companies operating in the UK would not have to make social security contributions for up to three years for employees they move from India to support their operations. This is estimated to benefit over 75,000 Indian workers and over 900 employers as it exempts Indian professionals and their employers from these contributions in the UK for a stay of up to 36 months.
"I think this is a good balanced outcome, because if Indian professionals can come and work here for three years and then don't have to give the contribution here in the UK, but carry on doing it in India...that secures them, because when they go back home, at least their pie is safe.
"They can get benefits, their pensions, their insurance, all those things have not gone to waste. So, think, this is a huge advantage to IT/ITES companies which are working here in the UK...not just technology companies, but even other firms," he said.
On whether he sees India-UK FTA becoming a template for other trade deals currently being negotiated, including with the EU, Mittal replied in the affirmative.
"I think so...This should now focus everybody's mind on the EU. This is out of the way now. The EU should have a similar playbook now. There are a lot of similarities between the UK and the rest of Western Europe. I don't see any major differences between the negotiating tactics there," he said.
On whether he believes the UK trade deal could help drive reasonable tariff negotiations with the US, too, Mittal said that while the agreement does add strength, drawing comparisons may not be prudent.
"I think this does help...you put one more in the bag, and then go on and negotiate. This definitely adds strength to India's negotiating power. But let's not compare...US is a market set apart from the rest of the world. It is the largest market in the world...One will have to be careful...Indian industry will have to be protected...But, America, at the moment, the way it's going is less predictable than many other countries in the negotiations. So, we'll just have to wait and watch how things progress there," he said.
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