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Case study: Indian trade deal

As the UK seeks to build its economy after the impacts of Brexit and Covid-19, a BU academic is playing an important role in advising the government on the benefits of a trade deal with India.

Professor Sangeeta Khorana gave evidence to the House of Lords’ International Trade Committee and the Welsh Assembly, as well as a member of the Expert Trade Advisory Group. With extensive experience in international trade and as a former civil servant within the Indian Government, she has a unique insight into the proposed deal between the fifth- and sixth-largest economies in the world.

Potential gains

Professor Khorana highlighted the potential gains that the UK could make as a result of a Free Trade Agreement between the two nations, with a particular focus on lower tariffs and reducing ‘behind the border’ barriers. She discussed the relationship between the two countries and their shared expertise as large exporters of services, and how the UK might benefit from areas where the two nations’ service sectors complement each other.

In addition, Professor Khorana’s evidence highlighted the opportunities for the UK to promote labour rights and standards and the need for increased environmental sustainability as part of the agreement.

Unlocking opportunities

She described the deal as important, saying that it supports the UK as it seeks to develop ‘an outward-looking global image, unlocking opportunities in the region and aiming to play a bigger role in the world.

‘India represents a large market of about 1.4 billion, and poses an important opportunity for enhanced market access for UK firms that will develop the economic relationship between strategically important bilateral trade partners.’

Overall, the deal has the potential to almost double UK exports to India, bringing in an extra £28 billion a year by 2035 and increasing UK wages by a total of £3 billion.

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