India UK FTA to Boost Economy as Trade Talks Expand Says RBI Governor

The India-UK Free Trade Agreement (FTA) is anticipated to improve several areas of the Indian economy, including manufacturing and services, according to Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday.

Speaking at a function in Mumbai, Malhotra stated that such bilateral accords are becoming more and more crucial for India's economic strategy as multilateralism loses traction on a global scale.“The UK FTA is the way forward, because unfortunately, multilateralism appears to have taken a back seat,” Malhotra said, adding that trade negotiations with the United States are also at an advanced stage.

Malhotra added that India is aggressively seeking a number of other trade deals, several of which are presently being negotiated. The RBI Governor's comments were made the day after Union Commerce and Industry Minister Piyush Goyal declared that India is extending its trade ties with other countries after signing the historic free trade agreement with the United Kingdom.

“Very good talks are going on with New Zealand, Oman, Chile, Peru, and the European Union. And on the bilateral trade agreement (BTA), good discussions are also underway with the United States,” Goyal told IANS in London. “I firmly believe that all these negotiations will lead to positive outcomes.”

Also Read: PM Modi Lists Sectors to Gain from India-UK Trade Agreement

The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) is set to come into effect on October 1. It is projected that around one million direct jobs will be generated in India by the agreement.