The United Kingdom’s trade negotiations with India are entering their final and more intricate stages, according to official sources within the government.
Trade Secretary Kemi Badenoch is scheduled to visit India this week for a meeting of G20 trade ministers.
While there has been speculation about the possibility of a trade deal being reached before Rishi Sunak’s visit to India in September, the BBC has learned that the government does not currently anticipate a comprehensive deal to be finalized by that time.
Government insiders have indicated that while they aspire to secure a deal in the coming “months,” they acknowledge the presence of significant challenges that must be addressed.
The pursuit of a trade agreement with India has consistently been considered by the government as a valuable accomplishment among the various deals the UK aims to establish following Brexit.
Previously, in April of the preceding year, former Prime Minister Boris Johnson pledged to achieve an agreement by the autumn of 2022, in time for Diwali; however, that target was not met.
The focus of these negotiations has included the reduction of tariffs on UK exports, including automobiles and whisky, which presently confront steep tariffs in India, undermining their competitiveness due to higher prices.
Notably, discussions have encountered obstacles, particularly stemming from the UK’s reluctance to expand visas for Indian workers. Meanwhile, the UK is eager to persuade India to permit greater access for UK-based service industries, including City firms.
William Bain, the head of trade policy at the British Chambers of Commerce, emphasized that improved access to visas for Indian nationals in the UK and reciprocal access for service industries constitute crucial elements for a successful agreement. He noted that services represent a significant portion of the UK economy.
As negotiations proceed, the challenge and opportunity lie in addressing mutual interests and concerns within the context of a potential trade agreement between the UK and India.
