Ahead of British Business and Trade Secretary Kemi Badenoch’s arrival in India on Thursday, a UK government official said that Free Trade Agreement (FTA) talks between the two countries are now “laser-focused.”
Badenoch is in India for a three-day visit, during which she will also meet her Indian counterpart, Piyush Goyal, with whom she hopes to discuss the ongoing UK-India Free Trade Agreement (FTA) negotiations.
FTA Negotiations
Badenoch will attend the G20 Trade and Investment Ministerial Meeting (TIMM) in Jaipur from 24 to 25 August.
While she will hold discussions with Goyal, sources said that the two countries are unlikely to strike a deal yet as further talks will be held in September.
#India and the #UK have made good progress in closing chapters and the free trade agreement (#FTA) negotiations are now "laser-focussed" on goods, services and #investment, UK officials saidhttps://t.co/AvPKj184Zh
— Economic Times (@EconomicTimes) August 23, 2023
FTA talks between India and Britain have made progress in recent months, and Round 12 of negotiations has been underway in New Delhi since last week.
A UK Department for Business and Trade (DBT) spokesperson said, “The UK and India are committed to working towards the best deal possible for both sides. We’ve made good progress in closing chapters, and are now laser-focused on goods, services, and investment.”
“There is a great deal to be done with India, but what happens in the negotiating room will govern the timeline,” a government source remarked.
Goods, services, and investment are among the complex and technical areas on which the two countries have yet to find common ground.
Further, as British PM Rishi Sunak is set to visit India in September for G20, a deal announcement at this moment is unlikely.
Campaign to Double Trade with India
On Thursday, Badenoch announced the new “Alive with Opportunity” campaign aimed at doubling the UK-India trade by 2030.
The $1.9 million campaign has targeted trade missions for UK firms in high-growth sectors like higher education and agri-tech.
‘Alive with Opportunity’ campaign kicks off to double #UK’s trade with #India by 2030 🇬🇧🇮🇳https://t.co/nho1ZFWrTG
— Conservative Post (@ConsPost) August 24, 2023
“I’m delighted to be returning to India to support their G20 Presidency, further our trade talks and meet key business leaders,” Badenoch said on the eve of her visit.
The British minister remarked, “The UK and India have a thriving relationship, and we both share an ambition to deepen our cultural and trading ties. India is the UK’s second biggest source of investment projects.”
The program aims to stimulate interest in UK goods and services in India.
Issues with UK-India Trade Deal
A UK-India trade deal is expected to boost the trade with India by as much as $45.6 billion.
In January this year, the two parties reaffirmed the desire for an early conclusion of a “balanced and comprehensive” FTA.
Former UK PM Boris Johnson had fixed Diwali 2022 as the deadline to finalise an FTA with India, but it could not be materialised.
Further, the trade deal ran into problems after British Home Secretary Suella Braverman’s controversial comments that an agreement could lead to increased migration from India to the UK. Braverman had criticised Indian migrants for overstaying their visas.
The two sides are facing issues regarding bridging differences on several critical issues, including the mobility of professionals, tariffs on automobiles, etc.
However, the Rishi Sunak government has stressed the need to finalise the FTA soon. There are hopes that a trade deal could be struck between the two nations by the end of 2023.