The UK Chancellor of the Exchequer Jeremy Hunt is on an India visit for the G20 Finance Ministers and Central Bank Governors. As India held the presidency over G20 for the year 2023.
The Chancellor met the finance minister of India Nirmala Sitharaman intending to deepen the bilateral economic and financial relations between the two countries.
The Indian presidency over the G20 issues raised many important global economic issues in the meeting. They mentioned the inflation, labor supply, and supply-side policies, to bring the resolution for the debt restructures. Lastly to work on food and energy insecurity globally.
The meeting with the finance minister
Jeremy Hunt said it’s an excellent opportunity to meet Nirmala Sitharaman face to face. This will help them to make real progress on important economic issues.
Both sides agreed to deepen the economic relations and further progress in the free trade agreement. The aim is to increase new investments, new jobs, and the technology Industry.
He also met the Indian business leaders and CEOs in Bengaluru at G20 Finance Ministers and Central Bank Governors. He praised the growth and development of Indian technology businesses that are trying to expand the country’s economy.
The Ukrainian Finance Minister Serhiy Marchenko joined the G20 meeting virtually. The UK stand has been clear on Russia’s aggression and invasion against Ukraine from day one. The leaders of the two countries also met and held discussions over military aid to Ukraine. The UK also increased sanctions on Russia.
The delays in the UK – India Free trade agreement
The negotiations between India-UK have going on for more than a year for free trade agreement (FTA). There have long pauses due to many reasons. The deal is important since the UK left the European Union officially.
The Ex-Prime minister Borris Johnson’s government gave the deadline for Deepavali 2022 for the FTA. Due to Britain’s internal political upheaval and changes. The Country is going through political and economic instability. The frequent changes in the prime minister also added to the delay of the Free Trade agreement.
There have been issues because of some controversial statements made about India’s immigrants. Britain has the highest number of immigrants from India. The leader mentioned that the open migration policy could be dangerous for the UK. This was the sole reason that the UK decided to go for Brexit.
However, the trade agreement is important and serves the nation’s trade, investment, and development. However, India- the UK held the seventh round of talks earlier this month.
He praised the growth and development of Indian technology businesses that are trying to expand the country’s economy.
Upcoming events will determine the Free trade agreement
The eight-round talks will be held in March from 20 to 24 March after the spring budget on March 15 by Rishi Sunak which will give the policy of the UK. This will determine the trade liberalization in UK post the Brexit.
India is also in talks with a free trade agreement with European Union. The Union Commerce minister of India Piyush Goyal reacted to the progress on the FTA with the EU. He said, “It could take longer than expected for the deal with the EU”.
The guidelines will be provided on custom duties, new trade policies, etc.