UK envoys are scheduled to arrive in New Delhi this week, marking a critical juncture in nearly two years of trade negotiations between the UK and India. A team of 30 UK officials, including Director General for trade negotiations Amanda Brooks, will embark on the 13th round of talks in the Indian capital. These negotiations are ongoing, and the officials are requesting anonymity due to the absence of a finalized deal.
At the core of these discussions lies a significant commercial agreement between two of the world's largest economies, representing a landmark achievement for both nations. For British Prime Minister Rishi Sunak, this deal could serve as a prominent demonstration of the advantages of Brexit. For India, it offers an electoral boost as Prime Minister Narendra Modi prepares for elections next year.
Earlier this year, both countries displayed a willingness to compromise on several contentious issues. India, for example, expressed its agreement to reduce tariffs on British cars and scotch whisky. In return, the UK indicated its readiness to ease certain visa rules for Indian professionals.
The finalization of this trade deal depends on political decisions made by Sunak and Modi. Most of the sensitive issues have already been resolved, and Modi was expected to convene a meeting to decide on the remaining critical matters. However, detailed information about these specific issues remains undisclosed.
Despite substantial progress, some issues are still under negotiation, according to two UK officials. Sunak, closely monitoring the progress, is preparing for a visit to India to announce the deal before the end of the year.
As the trade negotiations near a conclusion, the window of opportunity is narrowing, primarily due to India's impending national elections next year.
The Indian trade ministry spokesperson did not respond to inquiries made outside of regular business hours. The UK Department for Business and Trade, while refraining from commenting on the specifics of live negotiations, emphasized that the UK government is actively engaged with India. They stressed that any deal would be signed only if it is deemed fair, balanced, and in the best interests of the British people and economy.
The goals of Modi and Sunak include doubling bilateral trade by 2030 through an agreement that significantly reduces tariffs and enhances market access. Such a deal would support India's aspirations to become a manufacturing powerhouse and provide the UK with a platform to underscore the benefits of Brexit. Moreover, it could serve as a model for India to negotiate similar agreements with other developed nations, including the European Union.
