India to get better UK market access post-Brexit

THE MAY GOVERNMENT SAID IT WILL USE ‘BREXIT TO CEMENT BRITAIN’S STANDING IN THE WORLD... AND PROVIDE NEW OPPORTUNITIES TO INCREASE TRADE LINKS’

Keen to increase trade with India and other Commonwealth countries to compensate for the loss of the European Single Market after Brexit, Britain has promised improved market access to the UK that currently imports goods worth £20 billion annually from the group.

The Theresa May government said it will use “Brexit to cement Britain’s standing in the world and meet our commitments to the world’s poorest by securing their existing dutyfree access to UK markets and providing new opportunities to increase trade links”.

May has shown much enthusiasm to sign a free trade agreement with India, which can happen only after Britain formally leaves the EU, expected in March 2019. Initial talks have been held on such an agreement between London and New Delhi.

Downing Street said the commitment meant that nearly 48 countries across the world, from Bangladesh to Sierra Leone, Haiti and Ethiopia will continue to benefit from dutyfree exports into the UK on all goods other than arms and ammunition, known as ‘everything but arms’.

The UK is the fourth largest inward investor in India, after Mauritius, Singapore and Japan, with a cumulative equity investment of US $ 24.59 billion (April 2000-March 2017). UK ranks second among the G20 countries and accounts for around 7% of all foreign direct investment into India for the period April 2000-March 2017.

According to the latest Inward Investment Result 2015-16 released by the Department for International Trade, India retains the position as the third largest investor in the UK. India is also the second largest international job creator in the UK.