The long-coveted free trade agreement between India and the UK will pave the way for increased collaboration and investment in the energy sector, including in renewables, according to Kartikeya Dube, Head of Country and Chairman bp India.
"The UK India Free Trade Agreement (FTA) is a great step towards enhancing trade relationship between two partner nations," he said, commenting on the historic signing of the pact.
The world's fifth and sixth largest economies on Thursday signed a landmark free trade agreement that will cut tariffs on goods from cosmetics and textiles to whisky and cars and allow more market access for businesses in the two nations.
The deal, the UK's biggest such agreement since Brexit and India's first with a European economy, aims to expand the 42.6 billion pound trade by a further 25.5 billion pounds by 2040.
The pact was signed during Prime Minister Narendra Modi's visit to the UK.
"This will only enhance easier trade of goods and services but will also enable a seamless flow of talent and expertise," Dube said. "In the energy sector, this will encourage collaborations and investments including renewables." Under the FTA, 99% of Indian exports will face zero duties in the UK. In return, Britain's exports to India will see a 90% cut in duties, with most goods becoming fully tariff-free within a decade.
While India has opened up its market to several categories of consumer goods, including chocolates, biscuits, meats and cosmetics, New Delhi will get to export textiles, footwear, sports goods and toys, among others, to the UK.
