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The signing of the Free Trade Agreement between India and the United Kingdom is 'stuck' and with the coming elections in India it is difficult to finalise it, a UK Minister said today.
"Well, Free Trade Agreement (between UK and India) is currently stuck. The negotiations are tricky. You know Indian elections are coming. But it is quite difficult to finalise that. At the bilateral level there is progress", UK Minister for Business, Innovation and Skills, Vince Cable said today.
Admitting that the "trade relations" between UK and India, were neglected for many years, he said, "but UK is very keen to resolve the issues. I think the issue is on the Indian side which they can explain it to you".
"Whenever I meet Mr (Union Commerce and Industries Minister Anand Sharma, we are keen to see that we make progress in that negotiations. But at the moment it is slow", he told reporters after inaugurating the one-day "GREAT Britain Festival" here.
On bilateral trade relations, he said, "We have an objective of doubling between 2010 and 2015. We are on track to do that."
Currently, bilateral trade between UK and India is valued at 12 billion pounds.
Responding to a query about interest rates in UK, he said "the interest rates are at historically very, very lower levels. There is no immediate prospect of increasing interest rates. But, one thing which is causing some concern is that house prices are escalating rapidly."
Earlier welcoming Indian companies to invest in UK, he said at present there are 1,000 British companies operating in India.
"Britain is a very open economy. We welcome foreign companies. Tata is the biggest manufacturing company in the UK. They make our steel, our cars. We like them. Then Essar has one of the big refineries (in UK). Indian companies are very welcome in the UK", he said.
The "GREAT British Festival" showcases UK companies operating in India and encourages new business to business partnerships, including SMEs.
Later in the afternoon, Cable also made a visit to the Tata Consultancy Services office in Chennai.
