Reacting to news of an agreement in principle for a free trade deal between the UK and India, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:
“A Free Trade Agreement (FTA) between the UK and India is a huge boost to our economies and a welcome lift for our exporters. Both governments should be congratulated for their strong engagement with business and hard work throughout long, but ultimately successful, negotiations.
“Against the backdrop of mounting trade uncertainty across the globe, these tariff reductions will be a big relief. Products from Scotch whisky to clothing will benefit and this will give UK companies exporting to India a clear edge on increasing sales.
“There is great potential for future expansion with a trusted trading partner in the fastest growing region of the world’s economy.
“Alongside our strengths in services trade, particularly in business, travel and transport services, this agreement can offer real hope that our bilateral trade will grow strongly.
“The proposals for a follow-up Investment Treaty will also provide a solid platform to grow manufacturing and other sectors in our two economies.
“Negotiation is the best way to deliver results for business in trade. Chambers look forward to working with companies of all sizes to use this landmark agreement to drive a step change in exports and economic growth.”
David Peña, Director of International Trade at Chambers Wales South East, South West and Mid, said:
“The recent announcement of a Trade Agreement between the UK and India arrives at a crucial moment for Welsh exporters and traders. Opening a market of millions of avid consumers and a booming economy, projected to become the third largest in the world in the next three to five years, is an opportunity that our Welsh exporters and traders can’t let pass. Historical links, the reputation of UK products and services, and the use of English as the business language, make trading with India somehow familiar to UK based businesses.
“Several important sectors for the Welsh economy will be positively impacted such as advanced manufacturing, machinery, and energy. On the supply side, the vast Indian market may also offer an alternative supply chain for Welsh businesses wanting to reduce dependency from Far East suppliers.
“This Trade agreement also includes provisions on migration which could prove critical to allow a short-term solution for certain sectors such as hospitality, construction, and specific areas of manufacturing regarding skills gaps in very specific roles. This very same opportunity should be considered by specialists and professionals in specific areas who could now tap into a huge ecosystem of Indian SMEs in need of high standard professional services or world-class training.
“While we await for more details of this Trade Agreement to emerge, Chambers Wales South East, South West and Mid stays committed to working alongside our members to open new markets and opportunities for Welsh products and services abroad.”
Richard Heald, Chair of the UK India Business Council (UKIBC) – a member of the BCC’s international Chamber Network, said:
“The UK India Business Council welcomes the signing of the FTA between the United Kingdom and India. This marks a significant milestone in the deepening of economic and strategic ties between our two nations.
“It matters when the fifth and sixth largest economies in the world reach a trade agreement. Such an agreement is illustrative of the positive momentum in the UK-India relationship, the commitment and ambition of both Governments, and the opportunities for greater trade, investment and collaboration between our countries.
“While we await the full details of the agreement, we are optimistic that it will pave the way for enhanced trade flows, increased investment, and strengthened business partnerships across key sectors.
“The UKIBC stands ready to support our members, clients, and stakeholders in navigating the opportunities the FTA presents, and we will continue to work closely with both governments to ensure the agreement delivers tangible benefits for businesses of all sizes.
“We understand that signing of the agreement is starting point and it will need a Parliamentary signoff to enter into force, allowing businesses to take advantage of the new trade rules and opportunities.”
