UKIBC Sector Expert welcomes FTA between UK and India: Neil Bhutani
By Trisha Nagpal
By Neil Bhutani
Digital and Technology, Sector Lead
The UKIBC expresses its support for the recently concluded Free Trade Agreement between the two countries, viewing it as an advancement towards realising the digital ambitions of the UK-India roadmap for 2030.
Central to the UK-India bilateral relationship, is collaboration in technology and digital trade, which is why the recently launched ‘Technology Security Initiative’ is structured as a conduit for digital trade, particularly in emerging technologies. To begin with, the FTA will strengthen the TSI in emerging areas like AI and also help established industries like telecoms, while also creating a conducive environment for startups and innovators.
An ‘Innovation Working Group’ will be created to enhance cooperation in areas such as regulatory approaches and the commercialization of emerging technologies. This platform will bring together government and non-government stakeholders to address challenges related to innovation, provide policy recommendations, and facilitate the early identification and resolution of trade barriers—particularly those associated with emerging technologies.
While the final legal text is being completed, the agreement includes provisions aimed at eliminating unreasonable obstacles to digital trade and enhancing interoperability of digital trading systems, which includes facilitating the legal acknowledgment of electronic contracts and electronic authentication. Equally tech intensive industries like automobiles and electrical machinery stand to benefit from tariff reductions.
Finally, the services sector, especially IT/ITeS at large, is expected to be a major benefactor. A statement from India’s Ministry of Commerce & Industry indicated that the agreement would generate significant opportunities for Indian youth in the UK, a global centre for digitally delivered services, given its advanced digital infrastructure. Indian technology bodies such as NASSCOM have described the FTA as a significant milestone, stating that it alleviates the issue of double contribution burdens, which has been a persistent challenge for Indian tech firms in the UK.
For more information on the technology and digital economy sector, UKIBC can be contacted at enquiries@ukibc.com.
