India, EU may resume FTA talks

After a gap of almost 20 months, India and European Union are likely to resume talks for the proposed free trade agreement (FTA) to boost commerce and investment.

"We are keen and hopeful that at the next meeting (of India-EU FTA) there will be a positive result," Commerce and Industry Minister Nirmala Sitharaman said here at the 10th UK India Joint Economic Trade committee (JETCO) meeting here yesterday.

However, she did not elaborate on the date for the next meeting.

Last time in May 2013, both sides failed to bridge substantial gaps on crucial issues, including data security status for IT sector.

Launched in June 2007, the negotiations for the proposed Broad-based Trade and Investment Agreement (BTIA) between India and the 27-nation European bloc has witnessed many hurdles with both sides having major differences on crucial issues.

The two sides are yet to iron out issues related to tariffs and movement of professionals but the EU has shown an inclination to restart talks.

Further, Sitharaman said there will not be retrospective taxation.

"The government is committed....We want to provide simplified tax rule," she said, adding India is the place to do business as the country has been witnessing GDP growth of over 5 per cent.

Referring to the World Bank report on Ease of Doing Business, the Indian Minister said, "the assessment was based on period before May 2014. We have taken enough steps, made cutting edge decisions...The Modi government has removed the number of hurdles. More than 40 rules have been amended during the last eight months."

India has been ranked at 142nd in this regard by the report.

The Minister said the industry is looking forward to the Budget to be presented by Finance Minister Arun Jaitley next month.

India's investment in the UK has been quite upfront and they have been providing jobs there, she said adding "We can see a lot of interest and I am sure this interest will translate into actual business".

There is a lot of interest and enthusiasm and British companies are keen to participate in the Bengaluru-Mumbai industrial corridor and also to engage in development of smart cities, the Minister added.