Reserve Bank of India Governor Sanjay Malhotra on Friday lauded the newly signed Free Trade Agreement (FTA) with the UK, stating it will bolster India’s manufacturing and services sectors. Speaking at the FE Modern BFSI Summit in Mumbai, Malhotra emphasized the need for more bilateral trade pacts, noting that negotiations with the US are in “advanced stages.”

“Multilateralism has unfortunately taken a back seat,” Malhotra said, highlighting the India-UK FTA, signed during Prime Minister Narendra Modi’s recent UK visit, as a model for future agreements. The deal, long in negotiation, eliminates tariffs on goods like cars, textiles, and whisky, opening markets for both nations. Malhotra also mentioned ongoing talks for additional FTAs, underscoring their importance in the current global trade landscape.

In a nod to global central banking, Malhotra praised US Federal Reserve Chair Jerome Powell for upholding the Fed’s independence amid criticism from President Donald Trump. “Maintaining central bank independence is very important. He’s doing a commendable job,” Malhotra said, reinforcing the RBI’s stance on institutional autonomy.

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The India-UK FTA, effective from 2025, is expected to boost India’s exports, with 2023-24 bilateral trade at $21 billion, and create opportunities in IT, healthcare, and education services.

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