Commerce Minister Piyush Goyal urged Indian and British businesses to look beyond incremental gains from the India-UK Free Trade Agreement (FTA), stating that the pact should become a catalyst for "transformational growth" when it comes into force on July 15, according to Business-Today. Goyal, on a three-day visit to the UK to review preparations for implementing the Comprehensive Economic and Trade Agreement (CETA), addressed business leaders at a plenary organised by the High Commission of India in London.
Transformational Growth Focus
Business-Today reported that Goyal emphasised that businesses from both countries should actively explore partnerships to maximise opportunities. "Collaborations, cooperations, partnerships will be, in my humble opinion, the right way to come in quickly for both British businesses and Indian businesses," he said. He warned against limiting ambitions to the global trade growth rate of 4-6%, calling it a "betrayal of the trust that the world has on us today."
Double Contribution Convention Benefits
The Double Contribution Convention (DCC), also effective July 15 alongside the FTA, will benefit professionals on temporary assignments of up to five years, according to Business-Today. Goyal explained that Indians working in the UK on temporary work permits can save 25% directly into their savings. Currently, 12.5% paid by the employee and 12.5% by the company were lost; now those contributions can be paid into the employee's Provident Fund account in India, earning 8.25% interest tax-free.
Comprehensive Framework Beyond Tariffs
The minister reiterated that CETA extends beyond tariff reductions and rules of origin, describing it as a comprehensive framework to deepen a bilateral economic partnership currently valued at around £48 billion annually, as reported by Business-Today.
Critique of Global Rating Agencies
During the event, Goyal praised Indian ratings agency CareEdge while criticising global rating agencies. He stated that Fitch, Moody's, and Standard & Poor have been "unfair to India" and have not recognised the India growth story, according to Business-Today. He expressed surprise that "much weaker economies" received better ratings than India. He commended CareEdge for doing their job "extremely objectively."
Tourism and SME Encouragement
Pitching India as a global tourism destination, Goyal said the government was willing to support public-private partnerships to attract more international visitors, including high-value tourism and board meetings of global companies. He also encouraged small and medium enterprises (SMEs) to participate in overseas trade delegations, noting that the government plans to organise 500 such delegations.
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