India-UK FTA Will Take Time To Operationalise Due To Britain's Lengthy Processing: Piyush Goyal

India's free trade deal with the United Kingdom, which was agreed upon last month, may not come into force soon due to Britain's longer ratification process, Commerce Minister Piyush Goyal said on Wednesday.

"The process in UK is slightly longer, India gets trade deals approved much faster, So I do assume that in the next few months we may not be able to enter into force the agreement until the UK processes are complete," Goyal said while speaking at the plenary session of the India Global Forum, alongside UK Secretary of State for Business and Trade Jonathan Reynolds.

"Our effort over the next 12 months, on one hand, would be to close the trade deal, and on the other hand, have more and more businesses from India and UK get together," Goyal said.

The minister is on a two-day visit to the UK seeking to fast-track the India–UK free trade agreement and advance broader economic cooperation.

Goyal described the UK-FTA deal as a "good marriage" that will be "long-lasting", projecting that bilateral trade between the two countries could double within five years. "A free trade agreement brings stability and predictability to the relationship between two countries," he said, adding that "India and UK can partner in innovation to work together to bring more resilient supply chains, working with each other, complementing each other and adding value and profits to both countries."

Speaking on the FTA, Reynolds said, "we are both working at pace, we have different processes to implement trade agreements on either side."

In May, a social security pact — dubbed as Double Contribution Convention Agreement — was also agreed to along with the FTA between the UK and India. This agreement is a non-negotiable part of India’s free trade agreement, Goyal said. “It was on the table for the last three years to bring balance and equity to the trade deal between the two economies."

The DCC agreement exempts Indian employees temporarily working in the UK for up to three years from paying social security contributions in both countries' simultaneously. The move is expected to lead to significant financial gains for Indian service providers, enhancing their competitiveness in the UK market and creating new job opportunities.

Besides, Goyal expressed optimism about the India-UK bilateral investment treaty, stating there are no major "sticking points", and both sides aim for a favorable deal. "I'm very confident and an optimist to believe it will happen soon."