UK downplays reports of ‘imminent’ India trade deal ahead of G20 summit
The UK has downplayed reports that a trade deal with India is “imminent” ahead of the G20 summit in Delhi next month.
Some reports in the Indian press suggested that a deal could be agreed as early as September.
Prime ministers Rishi Sunak and Narendra Modi are expected to meet at the G20 conference, with bilateral talks alongside the main summit, in a bid to conclude the long-awaited deal.
Meanwhile, business and trade secretary Kemi Badenoch is reportedly set to travel to India on Wednesday to continue trade talks.
But a source close to the deal told CityAM there were still “complex” issues to resolve and a deal was not as “imminent” as the reports suggested.
“The 12th round of talks is underway and progressing well,” they said. “But what’s on the table is still complex.”
They added: “There is a great deal to be done with India, but what happens in the negotiating room will govern the timeline.
“We’ve made progress but talks are focused on complex and technical areas including goods, services, and investment.”
It comes after trade minister Nigel Huddleston told MPs earlier this year what mattered was “deals and not dates” and ministers would not be “setting an arbitrary deadline”, despite former PM Boris Johnson promising a “deal by Diwali”.
Officials have previously cited India as an “economic superpower” and said an FTA would boost the UK’s trading relationship with the south Asian nation, already worth £36bn in 2022.
UK businesses sold goods and services worth around £15bn to India last year, while the Indian economy is forecast to be the world’s third largest by 2030.
Whisky, cars, services and investment are seen as key for London, while Delhi wants improved terms for goods, services and work visas.
A Department for Business and Trade (DBIT) 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.
“While we cannot comment on ongoing negotiations, we are clear that we will only sign when we have a deal that is fair, balanced, and ultimately in the best interests of the British people and the economy.”