Trade | uk-india free trade talks gather momentum

UK-India free trade talks gather momentum

Britain’s Trade Secretary has announced he is to visit India this month to focus on finalising the Free Trade Agreement (FTA) negotiations as part of the UK government’s ambition to elevate the bilateral partnership across all sectors.

Addressing the annual India Global Forum’s (IGF) in London, Jonathan Reynolds, Britain’s Secretary of State for Business and Trade, highlighted the strength of the bilateral trading relationship which stood at £41 billion in the year to September 2024.

However, the minister went on to reaffirm the British government’s commitment to improve trade between India the UK, respectively the fifth and sixth largest economies in the world.

“I want to reaffirm the UK’s commitment to deliver growth for both countries through the trade deal that we’re talking about, through the Comprehensive Strategic Partnership and the Technology Security Initiative,” Reynolds said.

The visit makes good the promise made by UK British Prime Minister Sir Keir Starmer on the early re-start in 2025 of UK-India FTA talks. Starmer made the pledge at a meeting with Prime Minister Narendra Modi at the G20 Summit in Brazil last November.

Reynolds said: “I believe a comprehensive FTA and Bilateral Investment Treaty would be important to the UK, but I also believe it would show the world India is serious about its relationships to global trade, strengthening supply chains with trusted partners and delivering substantial mutual benefits for business and consumers across both countries.

“And the rest of the world would stand up and take notice of an agreement of that kind.”

He added: “India is a top priority partner for the UK, and we want to elevate that ambition across all aspects of our relationship, but also to take it to new heights.”

Reynolds also welcomed the launch of a new report by IGF’s UK-India Future Forum (UKIFF), entitled ‘Sentiment to Success Future-proofing the UK India Partnership’, which reviews the areas of progress along with immediate and actionable strategies to strengthen the bilateral partnership.

IGF Chairman Manoj Ladwa said: “The world is at a tipping point, and sentiment alone won’t sustain relationships in this era of uncertainty. The UK-India partnership must pivot from nostalgia to action, leveraging India’s rising global influence and the UK’s unmatched expertise.”

Co-hosted with the High Commission of India in the UK, the annual event brought together leading figures from the world of politics, business, finance and technology within the India-UK corridor.

Central bank chief flags rise in digital frauds

While acknowledging the important role played by banks in building resilience in the domestic financial system, the Reserve Bank of India (RBI) Governor Sanjay Malhotra has flagged the rise in digital frauds and asked banks to establish robust systems to thwart the criminals.

Malhotra recently held meetings with the managing directors and chief executives of both public sector and private sector banks in Mumbai. These interactions are part of the Reserve Bank’s continuous engagement with the senior management of the entities it supervises.

In a statement, the RBI maintained that the Governor, while highlighting IT risk management and cyber security, urged banks to ensure they have an enhanced oversight over third-party service providers to tackle the risks they present. “The need for RBI and banks to work together closely was emphasized [at the meetings] and suggestions were sought from the banks on enhancing the ease of doing business,” the central bank’s statement continued.

Malhotra urged banks to ensure continued financial stability, deepen financial inclusion, improve digital literacy, enhance availability and affordability of credit, strengthen customer service and grievance redress mechanisms, and continue to invest in technology and digital infrastructure.

And he emphasized the need for RBI and the banks to work together, and he sought suggestions from the banks on enhancing the ease of doing business.