Fox Pushes Trade Pact With India

Baroness Rona Fairhead with Trade Secretary Dr Liam Fox

UK offers special trade finance support to India to boost Indo-UK relations….reports Asian Lite News. The financial support is made available in Indian rupees, allowing Indian buyers to access finance in their own currency and making sourcing from the UK even more competitive

Baroness Rona Fairhead with Trade Secretary Dr Liam Fox

International Trade Secretary, Dr Liam Fox meets Indian Minister for Commerce and Industry Mr Suresh Prabhu to discuss greater cooperation between the two countries and identify barriers to trade and investment that must be addressed in order to boost future prosperity.

UK trade support is made available in Indian rupees, allowing Indian buyers to access finance in their own currency and making sourcing from the UK even more competitive. The deal will be a big boost Indo-UK relations as the country is preparing to welcome Prime Minister Narendra Modi among top commonwealth leaders.

 by .
Prime Minister Narendra Modi meeting UK Prime Minister Theresa May, on the sidelines of the 12th G-20 Summit, in Hamburg, Germany

The UK will host the Commonwealth Heads of Government Meeting (CHOGM) in April, where 52 Heads of State and thousands of businesses will be in attendance. India will be central to UK efforts to reenergise the Commonwealth, representing over half its population, a huge growing economy and the world’s largest democracy.

Dr Fox and Mr Prabhu were joined by a delegation of senior UK and Indian officials for the 12th meeting of the UK-India Joint Economic and Trade Committee (JETCO), which will build on progress made by the UK-India trade working group that was established in 2016.

Dr Fox announced that the national export credit agency, UK Export Finance (UKEF), has more than doubled its financial support to enable UK businesses to trade with India. It means £4.5 billion will now be available for UK companies exporting to India as well as Indian buyers of UK goods and services.

Suresh Prabhakar Prabhu.

India and the UK already enjoy a strong trading relationship, worth £15.7 billion in 2016, with UK exports to India amounting to £5.8 billion. Indian foreign direct investment (FDI) in the UK was worth £1.5bn in 2016, while UK investment into India rose to £13.2 billion in 2016.

There is huge potential to expand bilateral trade and investment as the UK prepares to leave the European Union.

UK and Indian businesses, including UK engineering consultancy Arup and Indian infrastructure firm Infrastructure Leasing and Financial Services (IL&FS), also met alongside the JETCO to discuss ways of boosting co-operation in growing sectors such as advanced manufacturing and smart cities.

“I am delighted to be meeting with the Indian Minister and business leaders today, to map out how we will build a stronger trading relationship between our two nations. India is the world’s seventh-largest economy and the fourth largest investor into the UK, while UK investment in India grew by 8.8% in the year to 2016,” said Dr Fox, International Trade Secretary. “For the first time in 40 years, the UK is preparing for its own independent trade policy, and expanding our bilateral trade and investment with India will be central to that task. It’s in our shared interest to boost prosperity, generate jobs, develop skills, and enhance the competitiveness of both our countries.”

“As an international economic department, we will continue to work closely with the Indian Government to break down the barriers to boosting trade. That includes more than doubling trade finance support for UK exporters and Indian buyers of our goods and services”

Following the talks, the Ministers issued a joint statement setting out their vision for a continued trading partnership in which the two governments and businesses work hand-in-hand to achieve shared prosperity.