Suryaa Business Desk: Developments in India are undermining the fruits of the prestigious India-UK Free Trade Agreement, international trade... An international trade body has expressed deep concern over developments in India that could undermine the fruits of the prestigious India-UK Free Trade Agreement. It said that the official proceedings in India against leading international liquor brands Diageo and Pernod Ricard are against the spirit of the trade agreements signed between the two countries. Business circles warn that these developments are likely to have a negative impact on future trade relations and the confidence of foreign investors.
It is a noteworthy development that the dispute has come to the fore at a time when plans have been drawn up to implement tariff reduction and trade facilitation measures in various sectors with an aim to further strengthen bilateral relations between the two countries. The trade body argues that it is not the right way to impose strict measures in the name of taxes and regulations on leading foreign companies expanding their business operations in the Indian market. Economic experts are of the opinion that these inquiries will lead to lack of transparency and hindrance to foreign direct investment. The representatives of the companies revealed that despite doing business in accordance with the government regulations, this type of inspection is pending.
It has been reported that diplomatic talks are already underway between the UK government and Indian officials on the issue. Analysts warn that both countries must stick to the terms agreed upon when signing trade deals, otherwise long-term partnerships will be affected. In the coming days, how this trade dispute will be opened and what decisions will be taken regarding the ongoing investigations against the companies is raising excitement everywhere. This development has become very important at a time when global investors are closely monitoring India's trade policies in the international market.
