Indo-UK body to reduce trade barriers

The setting up the joint economic and trade committee (Jetco) by India and the UK will help remove bureaucratic hurdles affecting the flow of foreign investment into India.

Karan Bilimoria, chief executive and co-chairman of the Indo-British Partnership, told Business Standard, "The government is clear that reforms have to take off, especially in the financial sector."

A 15-member high-level business delegation from the UK, led by Patricia Hewitt, British secretary of state for trade and industry, met government ministers late last week in a bid to improve cross-border relations and boost trade.

While Prime Minister Manmohan Singh did not give any timeframe for the reforms process, his talks with the delegation gave them a sense that the United Progressive Alliance was pro-reforms.

"Even our talks with the Uttar Pradesh government indicated that the state was pro-business," said Bilimoria.

Unlike the Indo-British Partnership, JETCO is a joint effort between the governments of India and the UK and companies from both countries.

Hence while the government 'supported' the initiatives of the Indo-British Partnership, it will now under JETCO play an important role. The next JETCO meeting will be held in London in a year's time.

The committee has agreed to examine intellectual property right (IPR) issues under government leadership following the concerns expressed by business from both countries regarding IPR protection.

Some of the other recommendations made at the first JETCO meeting include looking into opportunities for agricultural cooperation and initiating a dialogue on cooperation in infrastructure between private parties, among other things.

The dialogue will take note of existing bilateral structures like the joint power sector working group and the Indo-British Coal Forum to ensure these bodies maximise the potential and deliver concrete outcomes, the minutes of the first meeting said.

Trade between Britain and India is expected to double at the earliest from the current $ 10 billion two-way trade of goods and services.

"This only scrapes the surface. Once the government frees the market, removing the barriers, investment will come in and trade will rise manifold," added Bilimoria.

JETCO has agreed to set up a mechanism to examine the requirements of non-practice legal advisory services for enhancing trade and investment. The committee has agreed to initiate a dialogue on healthcare cooperation.