Lack of Investment Chapter in India-U.K. Trade Deal Not a Concern, Says Expert

Lack of Investment Chapter in India-U.K. Trade Deal Not a Concern, Says Expert

Global Economy

The absence of a dedicated chapter on investments in the proposed India-United Kingdom trade deal has not raised any concerns among experts, according to Anton Muscatelli, President of the Royal Society of Edinburgh and a leading expert on U.K. trade and economy. In an interview with The Hindu, Muscatelli emphasized that higher trade volumes and ease of doing business measures are more likely to encourage investments rather than a specific chapter on investments.

The India-U.K. trade deal has been under negotiation for some time now, with both countries seeking to strengthen their economic ties through increased trade in goods and services. While the lack of an investment chapter may have raised eyebrows among some observers, Muscatelli’s views suggest that other provisions will be sufficient to promote investment flows between the two nations.

Muscatelli noted that higher trade volumes can create a virtuous cycle of growth, which in turn can attract more investments from both countries. He also emphasized the importance of ease of doing business measures, such as simplifying regulations and reducing bureaucratic hurdles, in encouraging investors to set up operations in India or the U.K.

The expert’s comments come at a time when trade negotiations between India and the U.K. are gaining momentum, with both sides seeking to finalize a comprehensive agreement soon. While the absence of an investment chapter may not be a major concern for experts like Muscatelli, it remains to be seen how other provisions in the deal will address the needs of investors from both countries.

Source: original report.