Jaishankar added that trade ministers from both sides had already held discussions on a trade agreement and that „there is a serious intention to advance our trade relations.“ „Since the two countries completed a joint trade review in 2018, work has been underway to reduce trade barriers. The UK`s new Global Customs Calendar (UKGT) serves as the „cornerstone“ of an increasingly open trade partnership. Assuming all tariffs are applied, ukGT could stimulate trade flows by reducing tariffs on Indian exports by up to $40 million per year. At the same time, British companies have ensured the recognition and registration of polyhalit, a multinutrient fertilizer mined in the UK, which will enable British exports and help Indian farmers increase their yields while supporting a cleaner, more environmentally friendly and sustainable environment. The increase in investment in each other`s markets is more important than ever, as both economies are trying to recover from the effects of Covid-19,“ the UK High Commission said in a statement. First, there have been a number of lessons learned from the experience of our previous free trade agreements. In 2018, a NITI-Aayog note on free trade agreements reported india`s unrivalled and growing trade deficits as a result of free trade agreements with ASEAN, Japan and Korea. It is important that the deficit has also widened for India`s dominant value-added sectors, reflecting a deterioration in the quality of India`s trade with its free trade partners. Third, after the revision, the global trade order will most likely be influenced by geopolitical decisions. Many countries are now cautious about China and can strategically orient themselves to other trading partners for imports.
India has a good chance in this area and should fill this gap by building its champion sectors with immediate urgency. India can use indications from Vietnam and Bangladesh that make it extraordinarily good, as well as alternative targets for companies that relocate their production out of China. Existing and newly signed free trade agreements should take this trend into account and allow for some economic concessions instead of strategic ones. Political decisions often involve trade-offs between the economy and politics, and the choice of the right compromise is essential. As governments around the world increasingly reset their approach to trade agreements amid the coronavirus pandemic, the Narendra Modi government is stepping up efforts to renew India`s trade relations with the rest of the world by revising its free trade agreement or strategy for a free trade agreement or free trade agreement.