ICRIER and Aberystwyth University (UK) are collaborating on a research project titled “Convergence towards Regional Integration between the European Union and India- Trade Implications for India and UK” funded by the British High Commission, India office under the GOF / Economic Governance Programme. The background of this study is the proposed EU-India free trade agreement (FTA) with a likely start date of 2010. UK is India’s largest trading partner within the EU and, for both these countries to mutually benefit from the proposed EU-India FTA, it is important that we understand the trade implications between India and UK in the light of the proposed FTA.

The present study looks at the objective of increasing trade between India and UK within the context of the proposed EU-India FTA by assessing the existing non-tariff barriers (NTB) faced to trade by the Indian exporters in the UK through an identification of the existing differences in regulatory regimes and administrative hurdles. The project focuses on the goods sector mainly leather and textiles. In particular, the study focuses on leather footwear, garments & accessories and goods; in the textile sector, the focus is on apparel, yarn & fabrics and made-up textiles. An extensive field survey is being undertaken, both in India and UK, to understand the trade implications in the light of the proposed FTA. In India, manufacturers / exporters / associations / stakeholders / policy makers will be interviewed to assess their views on the extent of the prevailing non-tariff barriers. Similarly in the UK, interviews will be conducted to assess the views of the importers / specialist stores / buying houses / independent wholesalers / independent retailers / policy makers. The project will have a two fold output: first, identify the NTBs that at present impede trade between the UK and India in goods, i.e., leather and footwear, textiles and clothing. Second, evaluate the differences in regulatory regimes / administrative hurdles and on the basis of these suggest modalities to reduce the impact of the NTBs in bilateral trade between the UK and India.

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