UK's CBI & India's CII set up joint group to push free trade deal

With negotiations between India-UK government underway a focus on reducing the barriers to trade, cutting tariffs, and supporting firms to export will help consumers and businesses alike particularly in the face of cost-of-living crisis.

As part of a Memorandum in Understanding (MoU) between the CBI and CII, the group will provide a critical forum for discussion to ensure an FTA works to the benefit of businesses in both countries. The group will provide continual oversight and meet ahead of key milestones to take views on trade-offs, breakdown barriers to market access and help feed in on-the-ground business intelligence at a ministerial level in India and UK, CBI and CII said in a joint media release.

The UK’s world-leading renewable sector in particular could play an integral role in India’s transition to clean energy. India has committed to get 50 per cent of its energy from renewable sources by 2030. Reducing tariffs on green exports such as solar, onshore, and offshore wind, could open new opportunities for firms in India.

More broadly, securing a free trade agreement with India could almost double UK exports to India and boost Britain’s total trade by as much as £28 billion a year by 2035 and increase wages across the UK regions by £3 billion.

CBI president Lord Karan Bilimoria said: “A free trade agreement with the world’s fastest growing economy is now within touching distance, and to clinch that deal a focus on lowering barriers to trade is now essential. For example, on renewables, we have an opportunity to export UK’s expertise in clean tech. A deal has the potential to drastically lower tariffs on wind turbines parts that are currently as high as 15 per cent. I look forward to working with CII on this new taskforce to strengthen our ties across trade, investment, climate and health as our countries recover from the twin shock of COVID and the Ukraine crisis.”

Chandrajit Banerjee, director general, CII, said: “This partnership is an opportunity to address shared concerns, identify common interests and foster greater understanding and to develop capacity to address the issues of economic and global concerns.”

ALCHEMPro News Desk (KD)