Transformational growth prime focus of India-UK FTA: Goyal
Transformational growth should be the prime focus of the India-UK Free Trade Agreement (FTA), Commerce and Industry Minister Piyush Goyal told business leaders at a plenary session in London on Friday. The minister is in the UK on a three-day visit to review the preparedness of both countries for the implementation of the Comprehensive Economic and Trade Agreement (CETA), which comes into force on July 15.
During an interactive event organized by the High Commission of India in London, Goyal heard from members of a Federation of Indian Commerce and Industry-led delegation on the sector-wide opportunities on offer from CETA, such as advanced manufacturing, consumer goods, renewable energy, healthcare and tourism. “Collaborations, cooperations, partnerships will be, in my humble opinion, the right way to come in quickly for both British businesses and Indian businesses,” Goyal told the gathering.
“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.
“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. On the topic of the Double Contribution Convention (DCC), which also takes effect alongside the CETA next month, the minister informed businesses that it will apply to temporary workers in either country for a period of five years.
“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.
