India and UK talks are approaching the final yet trickier stages. Meanwhile, Trade Secretary Kemi Badenoch will visit India for a G20 trade meeting. Analysts speculate that the meeting could close a trade deal as Rishi Sunak prepares to visit the country later in September. But UK officials have clarified that they are yet to strike any agreement, and they could crack one in months. Financial experts say a trade deal with India could mark a significant milestone for the UK.
The deal could become the biggest for the UK post-Brexit. In any case, Former Prime Minister Boris Johnson announced last year in April that the two countries would close a deal by autumn 2022, but they missed the deadline. Britain now hopes to strike a trade agreement to lower UK export tariffs on exports like whisky and cars in India. These exports currently face triple-figure imported taxes and tariffs. In general, the tariffs lead to a higher price for UK products in India, making them less competitive.
UK ministers have voted against a proposal to grant more Indian worker visas, which hurdles the trade talks. Some officials have raised concerns that Conservatives have a track record of delivering no deals or bad deals on trade negotiations. Nonetheless, the UK could reap more returns by striking trade deals with India to set up more UK City firms & service companies in the country. The British Chambers of Commerce believes these trade deals might primarily benefit UK financial, business & travel firms.
In the meantime, service-based companies contribute up to 80% of the UK economy, but India will likely restrain UK trade deals in this sector. However, allowing more UK visas for Indian workers could be a considerable step towards facilitating trade talks. The UK wants to leverage India’s large export market and rapidly increasing prosperity. While the trade secretary's visit to the country is entirely related to the G20 meeting, she will likely negotiate formally with her counterpart on a suitable UK-India trade deal.
Overall, the UK is pushing for more Indian investors across Britain, but analysts say it is still early to count on a closed deal. Government sources have clarified that although previous meetings were successful, forthcoming chapters will likely become harder. Rishi Sunak will receive a state welcome to India as he is the first Indian-origin Britain Prime Minister. What’s more, India’s Prime Minister describes Rishi Sunak as a bridge between the UK and India.
The Department for Business & Trade announced that the two countries are working towards a suitable deal for both parties. Above all, the department highlighted that they had made immense progress in previous chapters and remain laser-focused on investment, services, and goods. The spokesman was reluctant to comment on the ongoing talks, explaining that they are waiting to sign a balanced and fair trade deal that will work towards the best interests of the UK and Indian economy.
