The minister is in the UK on a three-day visit to review the preparedness of both countries for the implementation of the Comprehensive Economic and Trade Agreement (CETA), which comes into force on July 15.
During an interactive event organised by the High Commission of India in London, Goyal heard from members of a Federation of Indian Commerce and Industry-led delegation on the sector-wide opportunities on offer from CETA, such as advanced manufacturing, consumer goods, renewable energy, healthcare and tourism.
“Collaborations, cooperations, partnerships will be, in my humble opinion, the right way to come in quickly for both British businesses and Indian businesses,” Goyal told the gathering.
“It will wedge your way faster; not compulsory, of course, your choice. If you are confident, you can do it on your own, that’s great. But that could also be one pathway which will make your journey faster.
“International trade normally grows at 4 to 6 or 5 per cent. If that is the level of ambition that we will keep as a nation, it will be completely a betrayal of the trust that the world has on us today… the world’s trust that India can deliver, that India must deliver,” he said.
On the topic of the Double Contribution Convention (DCC), which also takes effect alongside the CETA next month, the minister informed businesses that it will apply to temporary workers in either country for a period of five years.”Indians who come to work here on temporary work permits up to five years can save 25 per cent straight into their savings. (Currently) 12.5 per cent that the employee used to pay, 12.5 per cent that the company used to pay was otherwise just going lost. It can now be paid into your Provident Fund account in India, and of course it earns 8.25 per cent interest tax free; not a bad return on sales and also provides for your family’s social security,” he said.
He also reiterated that the CETA is not just about tariffs and rules of origin but a far more comprehensive opportunity within the bilateral trading partnership, which is estimated to be around 48-billion-pounds annually.
“Transformational growth and entry into hitherto uncharted territory should also be a prime focus of this team (of businesses), and the message you take back home, and the message my British brothers and sisters in this room take to your companies and your colleagues here is going to be very important,” he said.
The minister also launched a series of reports at the event, including ‘Indian Roots British Soil’ by the Confederation of Indian Industry (CII), which traces the journey of Indian investments through the past decade in the UK.
The UK India Business Council’s (UKIBC) manual on CETA implementation, a report by CareEdge, India’s ratings agency, and a report by FICCI on the evolution of the bilateral partnership were among the others launched at the plenary.
“So far, we only had Fitch, Moody’s and Standard & Poor, and I can say on record that they have been unfair to India. They have not recognised the India growth story, the strong India fundamentals, and the Indian capability and future, and captured it as much as a rating agency should have done. I will not cast any motives to it, but I do express surprise.
“I think what CareEdge has done is do their job extremely objectively. They have assessed much weaker economies than India, with absolutely no future, to whom other agencies have given better ratings than India, for reasons best known to them,” said Goyal.
During a discussion on India’s enormous tourism potential, the minister offered to pitch in government funds into a public-private-partnership from an export promotion perspective to attract greater tourism numbers.
“We really need to work on boosting numbers. And, on how we can attract high-value tourism… getting board meetings (of global companies) to see the evolution of India. Seeing is believing,” he said.
The minister also exhorted smaller and medium enterprises (SMEs) to enthusiastically participate in trade delegations, with 500 such initiatives planned for Indian businesses around the world.
Earlier, Goyal said he had “meaningful discussions” with his British counterpart, Business and Trade Secretary Peter Kyle, to explore new opportunities to deepen bilateral economic and trade cooperation.
“The conversation reflected the warmth, trust and forward-looking vision that continue to define our bilateral partnership… we remain committed to fostering an ecosystem that promotes innovation, investment, and holistic growth for both nations,” he said.