A trade agreement would also pave the way for deeper investment ties, particularly in financial services.
Britain’s Chancellor of the Exchequer Rachel Reeves, right, shakes hands with her Indian counterpart (Image: AP)
The UK is on the verge of a huge trade deal with India, it has emerged. The two nations have agreed 90% of their free trade agreement, which signals a major boost for Brexit Britain. A source told The Guardian: “We are nearly there. We are as close as we’ve ever been, but conversations at the political level cut both ways.”
Outstanding issues in the talks include tariffs on key exports like whisky and cars, which are pivotal for industries affected by US trade policies. The UK hopes to resolve these challenges soon, with a government insider stating that the final hurdles are largely about fine-tuning terms.
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Indian Prime Minister Narendra Modi (Image: Getty)
A trade agreement would also pave the way for deeper investment ties, particularly in financial services, a sector highly anticipated to benefit from the deal.
Rachel Reeves, in a call with UK businesses, said it was “imperative we go further and faster to kickstart economic growth”
Meanwhile, India’s Finance Minister Nirmala Sitharaman has highlighted the urgency for bilateral trade agreements amidst global uncertainties, hailing what she called a “great sense of positivity and dedication”.
The Chancellor and Business and Trade Secretary Jonathan Reynolds on Wednesday took part in the 13th UK-India Economic and Financial Dialogue (EFD), marking a significant moment in unlocking opportunities as the two countries look to strengthen economic ties and secure a Free Trade Agreement and Bilateral Investment Treaty.
Ms Reeves said: “In a changing world, it is imperative we go further and faster to kickstart economic growth.
“We have listened to British businesses, which is why we’re negotiating trade deals with countries across the world, including India, so we can support them and put more money in people’s pockets as part of our Plan for Change.
“Our relationship with India is longstanding and broad and I am delighted with the progress made throughout this dialogue to develop it further.”
Trade Secretary Jonathan Reynolds (Image: Getty)
Mr Reynolds added: “I was delighted to meet with Minister Sitharaman, hear from businesses, and discuss how we can strengthen the strong economic bonds between our two nations.
“Both the UK and India are committed to delivering economic growth and giving businesses the confidence and stability they need to expand.
“That is why we are continuing to negotiate towards an ambitious trade deal that unlocks opportunities both at home and abroad for British businesses and supports our Plan for Change.”
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In the year leading up to September 2024, bilateral trade between the UK and India amounted to £41 billion (approximately $52 billion).
In the fiscal year 2022-2023, total trade in goods between the two countries was £18.6 billion, with India exporting £10.5 billion worth of goods to the UK and importing £8.1 billion from the UK.
Additionally, during the year 2023-2024, total bilateral trade in goods reached £20.25 billion.
