Ficci calls for negotiations on FTAs with EU, UK 

Singapore: The Federation of Indian Chambers of Commerce and Industry (Ficci) has called for restarting of negotiations for India’s Free Trade Agreements (FTAs) with the UK and the European Union (EU). Citing the growing importance of the Indian economy in the global markets, Ficci said renegotiation on FTAs are very important at this juncture after Brexit.
India is a very strong and important economy that other countries want to associate with, said FICCI Secretary General A Didar Singh, calling for the restart of the India-EU FTA which has been on the anvil for 10 years.

Highlighting the need for renegotiation on FTAs at this juncture after Brexit, Ficci said its latest survey reveals that 800 Indian companies based in the UK reported a sudden 15 per cent decline in return on investments as the Pound Sterling fell 15 per cent following Brexit vote last month.

“Therefore, we feel India-EU FTA has a much better chance being operative and coming on for a common cause now because businesses need that,” Singh said. He addressed the South Asian Diaspora Convention here on Tuesday.
Singh also called for an urgent initiation of India-UK FTA, saying it would help clear the current uncertainty among businesses created by the UK’s decision to leave EU or Brexit.

He said: “The call came from a Ficci survey of the 800 Indian companies based in the UK, which reported a sudden 15 per cent decline in return on investments as the pound sterling fell 15 per cent following Brexit vote last month.”
Responding to the survey, the companies said they see a decline in profitability over the next three to five years, especially following the split decision which will impact their European business done through UK-based offices.

A Didar Singh, FICCI Secretary General The UK-based Indian companies see a decline in profitability over the next three to five years. Especially, following the split decision which will impact their European business done through UK-based offices. The companies are facing problems in getting new contracts and businesses in the EU. 

The companies, responding to the survey, said they were facing problems in getting new contracts and businesses, according to Singh.
“Over 50 per cent of the 800 Indian companies surveyed had presence in the EU through UK offices. All these businesses will have to re-calibrate their strategies,” said Singh.

The industrial segment and business firms have been reeling under uncertainty over Brexit during the past one year and it’ll continue for next two years. “There are concerns about managing businesses in the post-Brexit environment and some companies would like to set up another office in the EU, which would add more costs and make them less competitive,” said Singh.

He also hoped that the India-UK FTA would help relax student visa conditions allowing internships and employment for Indians studying there. There has been an estimated 20 per cent drop in Indian students going to the UK for studies over the last two and a half years when the internship and employment condition was removed.

Source: PTI