Commerce minister Piyush Goyal on Friday urged Indian and British businesses to look beyond incremental gains from the India-UK Free Trade Agreement (FTA), saying the pact should become a catalyst for “transformational growth” when it comes into force on July 15, TI reported.Goyal, who is on a three-day visit to the UK to review preparations for implementing the Comprehensive Economic and Trade Agreement (CETA), interacted with business leaders at a plenary organised by the High Commission of India in London.“Transformational growth and entry into hitherto uncharted territory should also be a prime focus of this team (of businesses), and the message you take back home, and the message my British brothers and sisters in this room take to your companies and your colleagues here is going to be very important,” PTI quoted Piyush Goyal as saying.He said businesses from both countries should actively explore partnerships to maximise opportunities created by the trade pact.“Collaborations, cooperations, partnerships will be, in my humble opinion, the right way to come in quickly for both British businesses and Indian businesses.”“It will wedge your way faster; not compulsory, of course, your choice. If you are confident, you can do it on your own, that’s great. But that could also be one pathway which will make your journey faster.”Goyal said India should not limit its ambitions to the pace at which global trade traditionally grows.“International trade normally grows at 4 to 6 or 5 per cent. If that is the level of ambition that we will keep as a nation, it will be completely a betrayal of the trust that the world has on us today… the world’s trust that India can deliver, that India must deliver,” he said.
DCC to benefit temporary workers
Highlighting the Double Contribution Convention (DCC), which also comes into force on July 15 alongside the FTA, Goyal said it would benefit professionals on temporary assignments of up to five years in either country.“Indians who come to work here on temporary work permits up to five years can save 25 per cent straight into their savings. (Currently) 12.5 per cent that the employee used to pay, 12.5 per cent that the company used to pay was otherwise just going lost. It can now be paid into your Provident Fund account in India, and of course it earns 8.25 per cent interest tax free; not a bad return on sales and also provides for your family’s social security,” he said.The minister reiterated that the CETA extends well 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.
CareEdge ratings
During the event, Goyal also praised Indian ratings agency CareEdge, while criticising global rating agencies for their assessment of India.“So far, we only had Fitch, Moody’s and Standard & Poor, and I can say on record that they have been unfair to India. They have not recognised the India growth story, the strong India fundamentals, and the Indian capability and future, and captured it as much as a rating agency should have done. I will not cast any motives to it, but I do express surprise.”“I think what CareEdge has done is do their job extremely objectively. They have assessed much weaker economies than India, with absolutely no future, to whom other agencies have given better ratings than India, for reasons best known to them,” he added.
Tourism, SMEs and trade
Pitching India as a global tourism destination, Goyal said the government was willing to support public-private partnerships to attract more international visitors.“We really need to work on boosting numbers. And, on how we can attract high-value tourism… getting board meetings (of global companies) to see the evolution of India. Seeing is believing,” he said.He also encouraged small and medium enterprises (SMEs) to participate in overseas trade delegations, noting that the government plans to organise 500 such initiatives for Indian businesses across the world.Earlier in the day, Goyal said he had “meaningful discussions” with UK Business and Trade Secretary Peter Kyle to review progress on expanding bilateral economic ties.“The conversation reflected the warmth, trust and forward-looking vision that continue to define our bilateral partnership… we remain committed to fostering an ecosystem that promotes innovation, investment, and holistic growth for both nations,” he said.
