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This panel discussion bringing together policymakers, analysts and industry figures is being organized as part of Enablers and Obstacles to UK-India Trade, a 3-year project funded by the ESRC and ICSSR being undertaken jointly by King’s College London and Indian Institute of Management Bangalore with project partner the Federation of Indian Chambers of Commerce and Industry (FICCI). Besides investigating overall drivers of UK-India trade, the project focuses specifically on the role of Micro, Small and Medium Enterprises (MSMEs) in India and their role in trade and exports.

UK-India trade negotiations

On January 13th 2022, India and the UK resumed negotiations for signing a Free Trade Agreement (FTA). As an interim step in lieu of a full agreement, both countries are open to signing an interim `early harvest’ pact. While India is seeking easier market access for agricultural products and better access to visas and immigration for Indian citizens, the UK wants India to lower tariffs on exports including whisky, automobile and wind turbine components.

Ambitions aside, at present both countries have a modest share in each other’s share of trade. As of 2019, although UK is India’s 3rd largest trading partner, India is 15th largest for the UK. In relative trade terms, both the USA and China have significantly higher trade shares with both countries.

India and UK's trade partners in 2019
India and UK's trade partners in 2019

And, while the significance of Small and Medium Enterprises (SMEs) and MSMEs for India’s economic growth, trade and employment is widely recognized, it is less clear how a UK-India trade agreement will effect SME and MSME activities and role in Indian exports.

 

Panelists

Mohan Kumar

Chairman of Research and Information System for Developing Countries (RIS) 

Param J Shah 

Director at FICCI UK

Rohit Mehrotra

Managing Director at NMK Textile Mills India Pvt Ltd

Yashodhara Dasgupta

Senior Trade Policy Adviser, British High Commission, New Delhi

 

Questions for the panel

  • What are the prospects of a UK-India FTA being signed soon given the current pace and sticking points in negotiations?
  • Should we expect relative trade shares to change significantly given the existing primacy of USA and China in both countries’ trade portfolios? In what time horizon?
  • What is the importance of Indian SMEs and MSMEs in UK-India trade in both goods and services?
  • In what ways and to what extent do the current negotiations reflect the needs and priorities of export-oriented SMEs and MSMEs in India?