The British firms will be treated on par with Indian firms.
The Comprehensive Economic and Trade Agreement (CETA) was signed on July 24 in London. It may take about a year for items implementation as the free trade pact needs approval from the British Parliament.
“UK companies can now provide telecom, construction, and related services in India without establishing a local presence, enjoying full national treatment, meaning they will be treated on par with Indian firms,” the commerce ministry said.
Services is a key chapter in the agreement as both countries are strong in different kinds of services.
India enjoys a trade surplus of around USD 6.6 billion with the UK. The country’s services exports stood at USD 19.8 billion and imports at USD 13.2 billion. In the agreement, the UK has provided a comprehensive and deep market access in 137 sub-sectors to Indian firms.
On the Indian side, commitments have been extended in 108 sub-sectors, granting UK firms access to domains like accounting, auditing, financial services (with FDI capped at 74 per cent), telecom (100 per cent FDI allowed), environmental services, and auxiliary air transport services, it said.
