Britain is closing in on a Brexit trade deal with economic superpower India after Downing Street revealed that “constructive and productive” talks are under way. Business Secretary Jonathan Reynolds held discussions with his Indian counterpart in No 10 on Tuesday, alongside employers from both countries.
The Prime Minister’s spokesman said: “The Government is committed to doing the right deal with India, which will improve access for UK businesses, cut tariffs and make trade cheaper and easier.” India’s trade chief Piyush Goyal is reported to have told business leaders that “25 of 26 matters have been agreed” following intense two-day negotiations and insiders said an agreement was likely “soon”.
Getting an agreement with India, which has a population of 1.4billion and currently has the world’s fourth-largest economy, would be a huge coup for Brexit Britain. Experts say it could soon become the third-largest.
Asked whether an agreement with the country was about to be announced, a No 10 spokesman said: “I think we’re getting slightly ahead of ourselves.
“The Prime Minister has said we’re now in a new era for trade and the economy, and that means going further and faster to strengthen the UK’s economy for working people’s pockets, and it also means strengthening our alliances and reducing barriers to trade with other economies around the world.
“The UK is a stable and attractive partner and will seek new alliances pragmatically to deliver a stronger and more secure economy here at home.
“On your specific question, talks this week have been productive, they’re constructive and they’re ongoing, but I’m not going to give a running commentary.
“The Government is committed to doing the right deal with India, which will improve access for UK businesses, cut tariffs and make trade cheaper and easier.”
He added: “The Business and Trade Secretary and Minister Goyal welcomed businesses to No 10 earlier this afternoon for a round table that celebrated the strength of the UK-India trade and investment relationship.
“There were representatives from UK businesses, including the Scotch Whisky Association, EY, Diageo … There were also representatives from Indian businesses, and that follows a busy few days of negotiations as we continue to make progress towards agreeing a trade deal with India.”
Work is also continuing on a trade deal with the US, although the Government is more optimistic about the prospect of convincing US president Donald Trump to exempt or partly exempt the UK from a 25% tariff on all car imports to the US, rather than negotiating an end to the 10% tariff on most other UK goods.