Food & drinks, pharma to be part of India-UK pact: Jayant Krishna, CEO, UKIBC

NEW DELHI: Lower tariffs on food, drinks and chemicals, along with a robust intellectual property rights (IPR) regime in India could be a few elements of the India-UK early harvest trade deal, said Jayant Krishna, Group CEO, UK-India Business Council.

Krishna, who took charge as the chief executive officer of the council earlier this month, also said a trade deal between the UK and EU could be a prelude to a pact between India and the UK. Last month, India and the UK affirmed their commitment to negotiate an FTA which would be preceded by early harvest deals in a staged manner.

India has said that the two sides can settle on the terms for the first 25-50 items for an early harvest deal. While New Delhi can offer textiles, furniture, pharma, industrial machinery and leather to the UK, it is keen on high quality cameras, automobiles and spirits in return. Spirits account for 80% of the food and drinks bilateral trade.

While the UK wants a robust IPR regime in India, a data adequacy agreement that would allow free flow of data and lower import duties on sprits that the country imports, New Delhi has sought lower duties on curries, spices and daal (pulses).

India-UK bilateral trade dipped to $15.5 billion in 2019-20 from $16.87 billion in 2018-19.

“We use multiple fora to discuss trade issues. We will keep dialoguing on tariff barriers,” Krishna said.

People issues
Just like with the US, India is discussing a social security agreement with the UK that would allow Indian IT firms to avoid paying mandatory national insurance for their overseas Indian staff as at present, they end up paying for social security in both India and the UK.

“Most people don’t get anything from it,” Krishna said.

A fifth of all visas the UK grants are to Indians.

“As a country, India should be added to the list of low-risk countries for movement of skilled workers,” Krishna said.