Proposed India-UK FTA Expected to Empower Women-led SMEs, Affirms UK Minister

The proposed free-trade agreement (FTA) between India and the UK has the potential to empower women-owned and women-led small and medium enterprises (SMEs), driving economic growth and fostering international trade.

UK Business and Trade Secretary Kemi Badenoch highlighted the significance of the agreement in promoting cooperation and providing opportunities for SMEs to enhance their competitiveness in the global market.

Boosting Women-led SMEs through Trade Agreement

The UK's Business and Trade Secretary, Kemi Badenoch, acknowledged the positive impact of the India-UK FTA on women-owned and women-led SMEs. A Trade and Gender Equality chapter has been provisionally closed, aiming to enhance the competitiveness of such SMEs and facilitate their participation in international trade. This move reflects a commitment to promoting inclusivity and empowering women entrepreneurs.

Supporting Small and Medium Enterprises

SMEs play a crucial role in both the UK and Indian economies. Recognizing their importance, the proposed FTA between India and the UK includes provisions to ensure that SMEs can navigate each other's systems and leverage the benefits of the comprehensive trade agreement.

By facilitating mutual understanding and cooperation, the agreement aims to create a conducive environment for SMEs to thrive and expand their international footprint.

Bilateral Trade Growth and Objectives

Bilateral trade between India and the UK has witnessed substantial growth in recent years. In 2022, total bilateral trade exceeded £36 billion, marking a remarkable 45 percent increase compared to the previous year.

This thriving trade relationship supports half a million jobs across both countries. With the objective of doubling bilateral trade by 2030, the UK is leveraging the proposed FTA to further strengthen economic ties with India.

Progress of Negotiations and Future Outlook

Negotiations for the India-UK FTA have been progressing steadily. The 10th round of talks concluded in June, and the 11th round is scheduled for this month. Both countries are committed to reaching an agreement that benefits various sectors and fosters sustainable economic growth.

The ongoing negotiations reflect the mutual interest in deepening trade ties and seizing opportunities for collaboration and economic cooperation.

SMEs in the UK: Driving Economic Growth

Small and medium enterprises are a vital component of the UK's business landscape. Accounting for 99.9 percent of the business population, SMEs contribute significantly to economic growth and job creation.

As of the beginning of 2022, there were an estimated 5.5 million SMEs in the UK, including 5.47 million small enterprises and 35,900 medium-sized businesses. The proposed FTA aims to further support and empower these SMEs, ensuring their participation in international trade.

Some relevant and latest facts about the news:

• The India-UK FTA is still under negotiation, but the 11th round of talks is due to take place in July 2023.

• The FTA is expected to be finalized in the coming months.

• The FTA is expected to double the bilateral trade between India and the UK by 2030.

• SMEs make up an important part of the UK and Indian economies. In the UK, SMEs account for 99.9% of the business population. In India, SMEs account for 99% of the non-farm economy.

• The FTA is expected to benefit SMEs in a number of ways. It will reduce tariffs on goods and services, which will make it easier for SMEs to export their products and services to each other's markets. The FTA will also make it easier for SMEs to invest in each other's countries.

• The FTA is expected to create jobs and opportunities for businesses of all sizes in both countries.

Here are some additional facts that you may find relevant:

• The UK government has said that it hopes the FTA will help to "level up" the UK economy by creating jobs and opportunities in all parts of the country.

• The FTA is also expected to boost trade between India and the UK in key sectors such as technology, healthcare, and education.

• The FTA is being negotiated under the UK's new "Global Britain" trade policy, which aims to strike deals that are "fair, free, and open".

Conclusion:

The proposed India-UK free-trade agreement holds promise for women-owned and women-led SMEs, fostering their growth and competitiveness. The agreement's provisions, including the Trade and Gender Equality chapter, aim to enhance cooperation and create opportunities for SMEs to participate in international trade.

With bilateral trade between India and the UK on the rise, both countries are committed to strengthening economic ties and supporting the growth of SMEs as key drivers of economic prosperity.