B20 Summit: FTA With UK Expected Soon, Efforts Ongoing For FTA With Canada, EFTA Countries, Says FM Sitharaman

Talking during the B20 India Summit, Nirmala Sitharaman said that sustained global economic recovery will be a key issue for the next few years

Finance Minister Nirmala Sitharaman on Friday said that a free trade agreement (FTA) with the United Kingdom is expected soon and the country is also making an effort for FTA with Canada and EFTA countries. Talking during the B20 India Summit, Sitharaman also said that sustained global economic recovery will be a key issue for the next few years.

"We are continually making efforts for FTA with the UK, Canada, and EFTA countries along with the commerce ministry. The speed it is going now is this year we should conclude the agreement with FTA. FTA with European Free Trade Association also in the works," Sitharaman said. EFTA includes Liechtenstein, Norway, Iceland, and Switzerland.

She elaborated on the significance of Free Trade Agreements (FTAs) in broadening supply chain diversity. 

India and the United Kingdom have been engaged in FTA discussions since the last year. Notably, former British Prime Minister Boris Jonhson has said that the FTA between the two nations would be inked by Diwali in 2022.

In recent days, Kemi Badenoch, the UK Business and Trade Secretary, confirmed that active deliberations are underway regarding business mobility within the proposed FTA between India and Britain. These negotiations are now entering their final stages.

Speaking during the event, the Finance minister also said that the world can not bear another supply chain shock like Covid-19.  

"We need to quickly diversify our supply chains. Well-functioning international markets with resilient and efficient supply chains are the ones that can help us sustain our growth. We need to cushion ourselves sufficiently against any shock that can happen," she said. 

 

Sitharaman said, "Each individual economy has its own peculiarities when trying to achieve sustained economic"

 

Adding that "this is a moment for India. We want to make sure opportunities for all."

She also emphasised that increased expenditure on infrastructure growth is key for sustained economic growth. The central and state government's capital expenditure push is to create green shoots of investment from the private sector.

 

 

"Increasing the emphasis on investments to spur growth is a sure shot route to achieving and sustaining growth and therefore investment in physical assets need to be substantially raised, driven by the public sector, and complemented by private sector," she said. 

 

Further adding that India has showcased an accelerated pace of economic reforms in the past 9 years. The share of capital expenditure in total expenditure rose from 12.3 per cent in FY18 to 22.4 per cent in FY24 (BE). Measures implemented by the government, the finance minister said, have incentivised states to increase their capex spending. States' capital expenditure increased by 74.3 per cent YoY in Q1 of FY24 to complement the Centre’s Capex increase of 59.1 per cent in the same quarter.

 

Starting today, the three-day B20 Summit is expected to see the attendance of several key ministers including Prime Minister Narendra Modi expected to speak on Sunday. B20, a G20 forum established in 2010, serves as a representative platform for the global business community.