Collaboration To Be Faster, Easier With IndiaUK FTA: UK Trade Commissioner For S. Asia

Harjinder Kang, the British Trade Commissioner for South Asia, has had a distinguished career marked by frequent changes. He was also director of trade policy in the areas of intellectual property, public procurement and key texts. In addition to his government duties, Kang spent 30 years with pharmaceutical giant AstraZeneca, initially as a chemist, which led him to lead global communications and the research and development of new radiopharmaceuticals and antibiotics.

Just before taking on this role in South Asia, Kang was the UK's chief negotiator on the UK-India Free Trade Agreement (FTA). This coincides with the UK tech sector becoming the third country to do so, after the US and China, to surpass the $1 trillion valuation.

Kang told HT that the various parties have been brought together to ensure better synergy between the two countries. However, when companies are ready to collaborate, they find a way.

India will play an important role and this is recognized in the UK. India's tech imports to the UK stood at £20.8bn at the end of Q4 2022, up 35% (or £5.4bn) from 2021 Kang talks about the evolving Indo-British technology partnership between the two countries. Free trade agreements, areas of interest to both countries, the regulatory landscape and what Indian companies and start-ups are looking for when locating in the UK. Edited excerpts:

Q: Your views on the evolution of the technology partnership between India and the UK over the next few years. What areas will be targeted?

Harjinder Kang: I can definitely answer that with very good and close trade relations between the two countries, anything you can imagine is possible! As you know, I have been the UK's chief free trade negotiator for the past two years. Talking to all stakeholders, especially UK and Indian companies, you can see that there is a real hunger and passion to do things together. And they are looking for ways to do it. How do you create the corridors that everyone is talking about, including the technology? I have just spoken to people who work in Manchester and Chennai and they are examples of how they have created their corridors.

I think we can do more and my job is certainly to try to facilitate more collaboration between the UK and Indian sectors. Especially life sciences, green tech, health tech, financial services and fintech – the list goes on. But these are really great opportunities to learn some extra skills and come up with great solutions to some pretty serious problems. There are many things the two countries can do together. A free trade agreement will help some, but not all. I think the companies themselves are already doing well.

Q. How will the FTA affect technology partnerships once finalized?

HK: As you know, a trade agreement usually has a section on services, i.e. trade via digital medium. And we are working hard to create a mutually acceptable solution. There is also a digital section. We're trying to work on it to make sure it helps businesses collaborate across borders, rather than restricting trade or cooperation. Of course, there are things that can help you. Even though there are no more FTA solutions and tools, there are companies that work very well together. A free trade agreement will always make cooperation faster and easier. But companies will continue to do so.

Q. The UK has advantages as a center of innovation and ease of doing business. What else could entice Indian tech companies and startups to locate here?

HK: I think skilled workers should be part of it. Academic institutions should be included. If you look at how easy it is to start a business, you must have said that this is one of the easiest places to start a business. When it comes to innovation and product development, do what you feel like doing. Another thing that I think may not have been addressed yet is the financial aspect of things.

If you look at the City of London, it's one of the biggest financial institutions in the world. So if you look at the capital requirements for startups, etc., who funds them? Does it come a lot from London? I think those are the main areas. People talk about resources, and then there's money and the regulatory framework that we talked about earlier. Added to this is the security of the investment. People need to feel invested in a country that is a stable democracy that will not disappear overnight.

Q: Given that the regulatory landscape of the two countries is very different, is there a risk of strain for companies doing business in both India and the UK?

HK: Under the free trade agreement, the regulatory environment in the UK and India is trying to bridge the gaps to see how we can minimize those differences. Some differences can create friction, stop or slow things down. We just have to accept that it's different. And if there is a will, there is a way, and this is the way. Of course, there have been many discussions at the political level and at the ministerial level. They are also a type of dialogue that takes place regularly. This gives everyone an idea of ​​how the two economies work.

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