Commerce Minister Piyush Goyal Is On A Week-Long Visit To London, Brussels And Oslo To Strengthen Trade Ties

US, EU and UK aim to establish supply chains in India through trade pacts

- Rajeev Jayaswal

NEW DELHI: Three developed economies — the United States, the European Union and the United Kingdom — aim to establish a dependable supply chain in India as a corollary to their proposed trade deals with New Delhi, people in the know said on Monday, adding that the matter has been discussed during recent visits of Indian officials to the US and Europe.

A mutually beneficial, cost-effective collaboration in several manufacturing sectors is possible under the investment chapter of the proposed free trade agreements (FTAs), they said, requesting anonymity. FTA partners can leverage each other's strengths to build sector-specific supply chains and become competitive in international markets, they said, adding that a free trade deal between India and the US would give Apple immense confidence in making India as a manufacturing base. HT published a report on April 25 that said Apple plans to source all US iPhones from India in two years.

“Many multinational firms of Europe are also contemplating to establish similar supply chains in India for their manufacturing ventures. For them, India is cost competitive with the required skilled manpower, resources and rule of law. An FTA will ensure that their investments are well protected,” one of them said, adding that the matter was also discussed with the other sides during the FTA negotiations.