British Trade Secretary Kemi Badenoch will hold her first face-to-face meeting with her Indian counterpart in Delhi on Monday in a bid to spark talks on a free trade agreement (FTA) between the two countries. The trip represents the first formal round of negotiations since July. In April, former prime minister Boris Johnson set an ambitious target of agreeing a free trade deal with India by Diwali in October. But he was forced to announce his resignation in July and the deadline was missed.
New Prime Minister Rishi Sunak said he was determined to reach a deal with India but would not sacrifice quality for speed, compared to Johnson. Badenoch, who was appointed to her role in September, will meet India’s Commerce Minister Piyush Goyal and address the negotiating teams before the round of negotiations begins. “I am here in Delhi to launch the sixth round of UK-India trade talks and meet personally with my counterpart, Minister Goyal, to make progress on this deal,” Badenoch said in a statement. “Both nations came to the table with the highest ambitions and willingness to work together on a mutually beneficial agreement.”
Britain’s Trade Department said it would seek to reduce tariffs on goods and open up opportunities for its services sector. Among the UK industries that want a lower tariff is whiskey. India’s whiskey export market was worth almost £150m ($180m) last year, but there is a 150% tariff. More visas to study and work in Britain is a priority for India. British Home Secretary Suella Braverman sparked controversy in October when she said Indians were the largest group of overstayers in the country.
Officials downplayed the impact of her comments on the meeting. Overall, Britain and India have a trade relationship worth 29 billion pounds ($35.54 billion), and its expansion is a major part of Britain’s Indo-Pacific foreign policy, which aims to strengthen ties with the region’s fast-growing economies. “The UK-India Free Trade Agreement remains a top priority for the industry. We applaud the Foreign Secretary and Prime Minister for listening and prioritizing substance over pace,” said Andy Burwell, international director of the Confederation of British Industry. “Trade is a fundamental driver of growth and India will be an important partner and market as the UK seeks to escape stagflation.” Badenoch said last month that Britain should do better on trade after its decision to leave the European Union, adding that she believed the benefits of Brexit would be longer-term.
