India, UK look at free-trade pact.

NEW DELHI: India and the UK are exploring the possibility of a free-trade agreement after the British voters backed an exit from the European Union.

Although it is still early days to decide on a bilateral agreement, which goes through several rounds of discussions, a treaty could result in cheaper Scotch prices, if India agrees to cut import duty from the current levels of 150%. In return, Indian goods such as garments could be allowed to enter the British market on payment of lower customs duty, while the government is also expected to pitch for easier visa rules for Indian professionals.

But, discussions are still quite a distance away. To begin with India and the UK have to first agree to study the feasibility of an agreement. If the proposal is found to be feasible, then the modalities of the treaty will need to be worked out before actual negotiations on the extent of duty cuts or sectors in which visa rules are liberalised are discussed.

Commerce and industry minister Nirmala Sitharaman on Friday said the two countries are exploring the possibility of an FTA. India has been negotiating an agreement with the European Union for close to a decade and even that will have to be reworked post-Brexit.

"Once the process of informal discussions starts then we get into discussions in detail. They will all fall into a formal framework...whether it is a preferential or a free-trade agreement that will be a mutually discussed matter," Sitharaman said after a meeting with Sajid Javid, UK secretary of state for business, innovation and skill. "India and UK already have a very strong trade and investment relations and we are looking at how we can go further," Sajid said.

With the UK moving out of EU, FTA talks with the EU are going to be a fresh exercise, she said.
"With the EU off course, it shall continue but with recalibrated now that UK is out of EU, so we shall be doing both."

Source : timesofindia.indiatimes.com