Britain’s exit from the European Union may help a free trade agreement start between the UK and India, according to the Confederation of Indian Industry (CII) president Naushad Forbes.
"We could do a probably very quick and easy free trade agreement (FTA) with the UK because our interests are very complementary, and the sectors which were considered sensitive (in India-EU FTA negotiations) are not sensitive in India-UK trade," Mr Forbes said.
The bilateral trade between India and the UK totalled £10.5 billion in 2015-16, down from £10.8 billion in the previous fiscal year.
There are a number of export opportunities for Indian companies, such as in garments and textiles sectors., Mr Forbes added. "So, there is a lot of merit in India-UK FTA. It could probably happen faster than the India-EU free trade agreement.”
India and the European Commission initiated negotiations for the proposed Broad-based Trade and Investment Agreement (BTIA) in 2007, and after seven rounds of negotiations without reaching a Free Trade Agreement, both sides have had major differences on crucial issues like intellectual property rights and duty cut in automobiles and spirits.
Mr Forbes concluded: "It [Brexit] has raised questions in a rather interesting way, which is that, we may end up with an Indo-UK FTA faster."
Confederation of Indian Industry www.cii.in
