India, UK seek stronger trade ties, post Brexit

Arun Jaitley and UK Secretary of State for International Trade Liam Fox voiced concerns over the protectionist measures seen in some parts of the world recently

Finance Minister Arun Jaitley on Tuesday said the government will initiate further economic reforms to attract investment and bridge the infrastructure deficit.

Speaking at India-UK Tech summit, Jaitley and UK Secretary of State for International Trade Liam Fox voiced concerns over the protectionist measures seen in some parts of the world in the recent past.

“It is important that we together challenge the protectionist sentiments that have been gaining traction across the world to remove those barriers that inhibit free and open trade, and to champion to see export and spread prosperity.”

Jaitley said, “… to reform more, to open more, to attract more investment, to expand more in manufacturing, (we need) to fill up the infrastructure deficit faster than what we have been doing.”

 

“We are looking to open out and that’s the being the direction of our economy,” he added. Jaitley said as the $2.2-trillion Indian economy expands, it is “least influenced” by voices of protectionism.

Jaitley said unlike inherent tendencies in developing economies, voices seeking protectionism are almost absent in India as the economy expands. “Normally it is the least developed and developing economies which have a tendency to cry for protectionism and that is a voice that’s almost not heard in India,” the FM said. Over the next decade or two, India will be providing very qualified people globally at extremely competitive rates that will help the country emerge as a hub of skilled manpower.

Jaitley said many opportunities have been wasted in the past and an aspirational nation doesn’t want to let go off any now. “If we look at the areas where we have growth potential I think one obvious area is manufacturing. The share of manufacturing has to increase from the present 15 per cent to 25 per cent level and that’s where we will realise we are creating far more jobs and expanding far better,” he said.

Also, there is a huge potential to grow in the eastern India and rural areas have a deficit and offer a tremendous potential to invest, he said. Fox said UK is a natural partner of the world's fastest growing major economy. He offered support to India's ambitious Smart City programme, besides strengthening bilateral trade and investment to help the Indian economy to grow.