The new round marks the first formal meeting between the India-U.K. negotiating teams since July and the first since Rishi Sunak took charge as British Prime Minister.
His Trade Secretary will address both teams of senior negotiators ahead of the sixth round of formal negotiations, scheduled to take place throughout the week.
“I’m here in New Delhi to kickstart round six of U.K.-India trade negotiations and meet my counterpart [Commerce and Industry] Minister Goyal in person to drive progress on this agreement,” said Ms. Badenoch.
“Both nations have come to the table with the very highest of ambitions and a willingness to work together towards a mutually beneficial deal. I’m excited about the opportunities we can create for British business,” she said.
“India and the U.K. are the 5th and 6th biggest economies in the world. We have a long shared history, and are in pole position to do a deal that will create jobs, encourage growth and boost our 29 billion pounds trading relationship,” she added.
The U.K. Government said the target for the FTA is to achieve a deal to cut tariffs and open opportunities for U.K. services such as financial and legal, making it easier for British businesses to sell to the Indian economy, which is set to be the world’s third largest with a middle class of 250 million people by 2050.
While in India, the U.K. Trade Secretary will also meet with business leaders to better understand their needs for a “modern U.K.-India trade relationship”. This will include a meeting with envoPAP, a U.K. company investing over 10 million pounds in India to construct a plant producing Fairtrade paper and packaging products.
The U.K.’s Department for International Trade (DIT) said strong growth in the Indian economy is expected to boost U.K. exports to India by over 9 billion pounds by the middle of the next decade.
Pointing to many U.K. businesses already taking advantage of the flourishing trading relationship, it highlighted food chain Pret A Manger and fintech pioneers Tide and Revolut among those with expansion plans for India.
Pret, a popular British coffee and sandwich retailer, is set to open its first branch in India early in 2023 following a franchise partnership with Reliance Brands. Mumbai will be the chain’s first branch as part of a plan to open 100 in total across the country.
“Bringing Pret’s freshly made food and organic coffee to more people around the world is a key part of our transformation strategy, and I’m delighted to be launching Pret in India,” said Pano Christou, CEO of Pret A Manger.
“With strong demand for fresh food and new dining experiences, we see an exciting opportunity to grow the Pret brand across India while also adding something truly unique to its food-to-go market,” he said.
Meanwhile, Tide, the U.K.’s leading small and medium enterprise (SME) focused business financial platform, announced the launch of its app as a market entry product in India last week. The launch is part of Tide’s expansion strategy, with India representing the company’s first international market.
Revolut, a British banking services app, is said to have created more than 300 Indian jobs and plans to create hundreds more in the coming years. After investing $46 million in the country, it recently opened its Indian head office in Bengaluru and aims to launch “bespoke” financial products, many of which would be reportedly new to the country.
DIT noted that an India-U.K. FTA would mean that businesses like Pret would benefit from a “reduction in red tape, more affordable cross-border trade, and increased opportunities to work with Indian companies and suppliers”.
“The U.K.-India FTA remains a top priority for industry. We applaud the Secretary of State and Prime Minister for listening and prioritising substance over pace. Trade is a fundamental driver of growth and India will be an important partner and market as the U.K. looks to escape stagflation, attract skilled labour and deliver on the green transition,” said Andy Burwell, International Director at the Confederation of British Industry (CBI).
According to official U.K. Government data, India-U.K. bilateral trade currently stands at around 29.6 billion pounds a year. Both sides formally launched FTA negotiations at the start of this year with former prime minister Boris Johnson announcing a Diwali deadline for its conclusion.
However, Prime Minister Sunak committed to working “at pace” towards an FTA that does not “sacrifice quality for speed” after that October deadline was missed amid political turmoil in the U.K..
“I discussed the free trade agreement with India, and both the Prime Minister of India and I committed our teams to working as quickly as possible to see if we can bring a successful conclusion to the negotiations,” PM Sunak told the House of Commons last month.
“Without negotiating all these things in public, I am pleased that the majority of the substantive negotiation conversations were concluded by the end of October. We will now work at pace with the Indian teams to try to resolve the issues and come to a mutually satisfactory conclusion,” he said.