Tuesday, 02 January 2024 12:17 GMT

UK Minister For Indo-Pacific Kicks Off India Visit To Boost Bilateral Ties


(MENAFN- Live Mint) New Delhi: Seema Malhotra, UK's minister for the Indo-Pacific, kicked off her first official visit to India on Thursday to build momentum around the recently-signed free trade agreement (FTA) between the two countries and advance cooperation under the joint UK-India Vision 2035, the UK embassy said in a press statement.

The visit comes soon after UK's Prime Minister Keir Starmer's trade mission to India and is aimed at strengthening business links, boosting investment flows and expanding collaboration in technology, education and skills.

Trade between the two countries continues to grow steadily. India's merchandise exports to the UK rose 11.7% to $14.5 billion in FY25, while imports grew 2.3% to $8.6 billion, taking the total trade to $23.1 billion, up 8% from $21.39 billion in FY24, when exports were at $12.98 billion and imports at $8.4 billion.

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The landmark India-UK FTA was signed on 24 July in London during Indian Prime Minister Narendra Modi's visit. It is the most comprehensive FTA signed by the UK in the Indo-Pacific region post-Brexit and adds to India's growing portfolio of bilateral trade agreements, including those with Australia and the UAE.

During her three-day itinerary, Malhotra will meet UK businesses operating in Chennai and Bengaluru-including Tesco, Revolut and BT-to understand how the FTA is supporting their operations and helping channel investment back to the UK.

Calling the visit a reflection of the importance the UK places on its partnership with India, Malhotra said the revitalized relationship was already creating jobs, driving innovation and delivering investment in both the economies.

Malhotra also underlined her personal connection to the visit, calling it significant for a UK minister of Indian origin.

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In Bengaluru, Malhotra will announce the return of the British Council's Women in STEM Scholarship programme to South Asia, including India, after a one-year gap. The scheme offers fully funded one-year Master's degrees at leading UK universities-covering tuition, travel, living expenses and insurance-with 10 scholarships worth £400,000 earmarked for the region for 2026–27.

The minister will hold meetings with Karnataka industries minister M.B. Patil and higher education minister M.C. Sudhakar to discuss cooperation in advanced manufacturing, research and skill development. In Chennai, she will meet Tamil Nadu industries minister T.R.B. Rajaa to explore opportunities in green technologies, innovation-driven investment and future-oriented skilling.

Trade experts said the visit reflects how quickly both sides want to translate the India–UK FTA from a policy announcement into real economic gains.

“The UK minister's visit shows how quickly both sides want to operationalise the FTA. With tariffs eliminated on almost all Indian exports, this agreement will significantly improve India's competitiveness in the UK market,” said Abhash Kumar, a trade economist and assistant professor of economics at Delhi University.

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The FTA promises to unlock major economic gains for India by eliminating tariffs on 99% of Indian export, covering nearly 100% of the trade value. Indian businesses will benefit from zero-duty access to the UK, including for exports of textiles, footwear, carpets, cars and marine products, which currently face tariffs of 4–16%. The UK will see tariff reductions in India on luxury items such as Scotch whisky and premium cars.

The FTA-formally known as the Comprehensive Economic and Trade Agreement-seeks to increase bilateral trade to $120 billion by 2030 by eliminating or significantly reducing customs duties on a wide range of products.

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Live Mint

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