Earlier last week it was announced that after a five-day visit to Delhi, the UK has secured a long-awaited post-Brexit trade partnership with India.
On 10 February, the Department for International Trade (DIT) confirmed that Liz Truss, Cabinet Minister had agreed to terms of an Enhanced Trade Partnership (ETP) and laid the groundwork for a potential Free Trade Agreement (FTA). This trade partnership includes several investments by leading businesses, including Tata Consultancy Services, a multinational technology company, and global pharmaceutical and biotechnology company, Wockhardt. It seems that Piyush Goyal, Minister for Commerce and Industry, may have received his “early harvest” deal, with the renewed momentum of discussions suggesting that a potential future free trade agreement is achievable.
Speaking on the agreement, Truss urged that the deal had “set the stage for a much closer partnership with one of the economic powerhouses of the present and future”. This marks a significant moment in India-UK partnership, as both sides move towards recovery taking into account the economic effects of COVID-19.
How Will the Agreement Change India-UK Trade?
When the UK’s Foreign Secretary, Dominic Raab, visited Delhi in December last year, he spoke of key elements of a 10-year roadmap to deliver a “step-change in ambition” and a deeper economic partnership. Across technology, education, research, and innovation, the counties are now set to press forward, each embracing their status as a leader in each field and forging a collective strategy for growth.
For particular sectors, this agreement will have a huge impact. Life Sciences, for example, has remained a priority throughout discussions and has received significant investment as part of the ETP. During her visit, Truss met with Smart Respiratory Products, a digital health company helping medical staff to support patients remotely using a smartphone app and digital platform. UK company Micropore is also now set to open up in Hyderabad to supply award-winning medical technologies to customers in the region.
This investment into Life Sciences will further opportunities for young professionals and graduates in these multi-billion dollar industries, certainly supporting and embracing activities like the recent Life Sciences Careers programme as JSS Academy of Higher Education & Research (JSS AHER).
What Do Trade Agreements Mean for Individuals?
Trade negotiations inevitably affect financial markets such as forex, meaning this India-UK deal presents a dynamic time for investments in derivative products like spread betting. Forex, as an example of spread betting, is a good place to start, as the market is more accessible, efficient, and faster than ever before, and remains a cornerstone of international trade. Therefore, for opportunistic investors trading through spread betting, forex makes a perfect entry point, with a huge amount of potential.
The Enhanced Trade Partnership will be formally launched when Boris Johnson visits India later this year. With ongoing discussions towards an FTA, it seems opportunities between India and the UK will continue to grow, embracing the entrepreneurial spirit of both nations. This in turn sets precedence for individuals and communities to prosper, a turning point for India-UK trading in a post-Brexit world.