India-UK FTA to feature first-ever innovation chapter, says commerce secretary
The pact is in its final stages, with both sides subjecting the chapters to legal scrutiny.
'This is for the first time that a chapter on innovation is being added in an FTA. A working group will be set up to advance cooperation in this area,' Barthwal said, highlighting that the India-UK FTA could become a template for next-generation trade agreements.
The innovation chapter aims to go beyond the traditional focus on goods, tariff concessions, services and investment, and instead promote collaboration in areas like health technology, artificial intelligence, clean energy and advanced manufacturing.
Barthwal pointed to sectors like medical devices—including MRI machines—as having immense potential for joint development and technology-sharing between India and the UK.
The move reflects a broader evolution in global trade thinking, where FTAs are increasingly being used to create 'innovation corridors' that link economies not just through goods and services but also through shared R&D efforts, start-up ecosystems, and technology transfer frameworks.
For India, this marks a strategic step in positioning itself as a hub for innovation-driven growth, aligned with its ambitions under the 'Viksit Bharat 2047' vision.
'Modern FTAs today are leading the innovation corridors. India must align its trade strategy accordingly,' Barthwal said, noting that India sees innovation not as a by-product of trade, but as a deliberate area of cooperation.
India and the UK have also set a precedent by adding a dedicated chapter on anti-corruption and anti-bribery measures, according to a policy paper released by the UK government and reported by Mint on 10 May.
India has no such dedicated measures in its FTAs signed with Australia, the UAE, and the European Free Trade Association (EFTA), a four-nation bloc comprising Iceland, Liechtenstein, Norway, and Switzerland.
The inclusion of a chapter on anti-corruption in the India-UK FTA is a crucial step towards levelling the playing field for exporters and investors, who often face inflated costs and operational uncertainty in markets affected by such malpractices.
As per the FTA's policy paper, the UK has eliminated tariffs on 99% of its exports to India, covering nearly the entire trade value, as the two nations aim to double bilateral trade to $100 billion by 2030. Negotiations for the free trade agreement began in January 2022.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
15 minutes ago
- The Hindu
Commerce Ministry to investigate, clamp down on dumping, 'import surges'
The Ministry of Commerce has begun using its various departments such as the Directorate General of Foreign Trade (DGFT) and the Directorate General of Trade Remedies (DGTR) to clamp down on import surges and dumping in India owing to malpractice by India's trading partners. It has also begun coordinating with other Ministries on this. The DGTR last month initiated anti-dumping investigations on eight different product lines originating from a total of 12 countries or groupings, The Hindu has learnt. 'In the Department of Commerce, we have started monitoring the import surges for all commodities now and have started sharing the surge reports with different Ministries so that they can also monitor at their level,' Commerce Secretary Sunil Barthwal said during a press briefing. 'Whenever we find an unusual surge, we examine it, and if need be, if we find that a surge is due to a malpractice, in that case we are also using the DGFT to restrict it,' he added. For example, the DGFT last month restricted the import of the alloys of palladium, rhodium, and iridium containing more than 1% of gold. India imposes anti-dumping duty on five Chinese products According to sources, this was because the government found that importers were importing gold — which normally attracts a higher import duty — disguised as alloys of these metals, the import of which was free. 'We have also told DGTR, in view of the fact that a lot of trade diversions are happening around the world, to look at if there is any import which may be harming the domestic sector in the country,' Mr. Barthwal further said during the press briefing. The Hindu has learnt that the DGTR in June 2025 launched eight investigations on possible dumping activities. Dumping refers to the practice of exporting goods to other countries — including to India — at prices well below their normal rate. The DGTR has launched such anti-dumping investigations on the import of several industrial chemicals from China, Taiwan, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, UAE, Switzerland and the EU, as well as types of glass wool from Egypt and types of paperboards from Indonesia.
Mint
15 minutes ago
- Mint
India's draft aircraft rules: What they say and why they matter
India's ministry of civil aviation notified the draft Indian Aircraft Rules 2025 on 15 July. The new rules would eventually replace two British era laws and align with the laws of the International Civil Aviation Organization. What does the draft rule say, and why are these important? Mint breaks it down. Why do the new aviation rules matter? The Indian Aircraft Rules, 2025 (Bharatiya Vayuyan Niyam) is an effort to update rules and regulations in India's aviation sector, making these more modern. The new rules would replace two British era laws—the Aircraft Rules, 1937 and the Aircraft Rules, 1920. The RT (Restricted) Operator Licence Rules, 2025, will also be replaced by the new law. The new rules align with the laws of the International Civil Aviation Organization (ICAO), an agency of the United Nations. A refresh is needed as India's aviation market is expanding rapidly—it is the third largest domestic market, after the US and China. Indian airlines have big expansion plans, with over 1,500 aircraft on order. The new rules could also boost the confidence of foreign lessors. What are the major reforms proposed in the draft? The draft proposes reforms across several areas: Public and industry stakeholders will have time till 14 August to respond with their feedback. Next, the ministry of civil aviation will go through comments, make the necessary changes, and then notify the rules through a gazette notification. What are the changes proposed in pilot licensing? The new rules propose to relax educational qualifications, making it easier to attain a student pilot licence. Earlier, it was mandatory for an aspirational pilot to have a science background in high school with mathematics and physics as subjects. In the current proposal, students pursuing arts and commerce can also opt for a student pilot's licence. Anyone with a Class 10 qualification can apply for a student pilot licence and a private pilot's licence for airplane and helicopters. Currently, it is essential to have a 10+2 qualification. The new rules also propose to make it easier to attain a commerical pilot's licence and airline transport pilot licence with a minimum educational qualification of Class 12. How will easier licensing rules help? India has a huge shortage of pilots. As per CAPA India, by 2030, India would require at least 10,000 new pilots. Experts say relaxing rules for student pilots will be a win-win situation for all stakeholders. Any rules around aviation safety? The proposed rules talk about enhanced focus on safety management systems for all entities. The Directorate General of Civil Aviation (DGCA) will establish an enhanced mandatory safety reporting system to facilitate collection of safety data and safety information on actual or potential safety. The draft laws have also included 'fatigue management' as a separate section. In the British era laws, fatigue was missing. Fatigue management would be applicable to the crew, pilots and air traffic controllers. What exactly is a fatigue management system? It is a system to ensure that the crew and pilots are well-rested and fit for duty. For pilots, as per the flight duty time limitation (FDTL), the duty hours are currently 13 hours maximum per day, including up to 9 hours of flying. For cabin crew members, the mandate is 12 hours of rest daily and a 48-hour mandatory rest period weekly. What are the current fatigue rules? In January 2024, the DGCA announced new flight duty time limitation (FDTL) rules, which were supposed to be implemented from 1 July 2025. The draft rules propose an enhanced rest period for pilots to reduce fatigue. This would increase weekly rest from 36 to 48 hours and reduce permissible night flying from 1 November. The airlines have sought more time for implementation as it would lead to increased cost. Moreover, there is a shortage of pilots. Nonetheless, the airlines have started to implement some rules in a phased manner. Currently, rosters, for example, are being made in compliance with the order. The 'night duty' period is now calculated till 6 am, instead of the earlier 5 am.
Mint
an hour ago
- Mint
Tech Mahindra Q1 attrition rate at 12.6%, total headcount rises by 897 to 1,48,517 employees
Tech Mahindra's employee attrition rate for the quarter ended June 30, 2025 (Q1FY26) stood at 12.6 percent, trailing 12-month basis, up from 11.8 percent in the previous quarter (Q4FY25) and from 10 percent in Q1FY25. In Q1FY26, Tech Mahindra's total headcount increased to 1,48,517, up by 897 YoY. Mohit Joshi, CEO and Managing Director, Tech Mahindra, said, 'Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44 percent on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies.' Overall, the IT services firm Tech Mahindra delivered a strong set of results for the quarter ended June 30, 2025 (Q1FY26), with its net profit rising 33.95 percent year-on-year (YoY) to ₹ 1,140.60 crore, compared to ₹ 851.50 crore in the corresponding quarter last year. The company's performance was supported by sustained deal momentum and margin improvements despite a cautious macro environment. Revenue from operations grew 2.66 percent YoY to ₹ 13,351.20 crore, up from ₹ 13,005.50 crore in Q1FY25. In dollar terms, revenue rose 0.4 percent YoY to $1,564 million, while profit after tax (PAT) increased 30.2 percent to $133 million. PAT margins improved by 190 basis points (bps) on a YoY basis to 8.5 percent. Operating profit (EBIT) rose 30.2 percent YoY to $172 million, with EBIT margin expanding by 260 bps to 11.1 percent — indicating healthy operational efficiency gains. The company reported total deal wins worth $809 million during the quarter, a sharp 51 percent increase YoY. Tech Mahindra highlighted a 44 percent growth in its total contract value over the last twelve months, underscoring strong client traction across key verticals. Tech Mahindra's Days Sales Outstanding (DSO) increased slightly to 95 days, up by two days on a YoY basis. Cash and cash equivalents at the end of the quarter stood at ₹ 8,072 crore, reflecting continued financial prudence. Rohit Anand, Chief Financial Officer of Tech Mahindra, said, 'We have delivered seven consecutive quarters of margin expansion – a clear reflection of the discipline and focus across our organization. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements.' Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
