This week, Trade Secretary Kemi Badenoch is in India for a meeting of G20 trade ministers.

There has been talk that a trade agreement could be reached before Rishi Sunak’s travel to India in September.

However, the BBC has been told that the administration does not expect a full agreement to be reached before then.

According to government insiders, a settlement could now be “months” away, but there are still some “big nuts to crack.”

The United Kingdom and India have begun trade discussions involving billions of dollars.
A trade agreement with India in 2022 would be a significant prize.
Cancel the trade agreement with India?
A trade pact with India has long been regarded as one of the most valuable partnerships that the UK might make with other countries following Brexit.

Former Prime Minister Boris Johnson stated in April that an agreement would be “done” by Diwali in the autumn of 2022, but that date was missed.

The UK has been especially eager to reach an agreement that would lower tariffs on UK products such as vehicles and whisky, which currently face triple-digit tariffs, or import levies, in India.

Because of these taxes, UK items might be substantially more expensive in India, making them less competitive.

Trade talks have hit some snags in the recent year, owing to British governments’ refusal to offer more visas to Indian workers.

The UK has been lobbying India to enable more UK City corporations and service industries to establish themselves in the nation.

According to William Bain, head of trade policy at the British Chambers of Commerce, this would be a “big win” for British enterprises, notably those in the tourism, business, and financial services sectors.

“Up to 80% of the UK economy is services-based,” he claims.

“That’s one of the last areas where India would want to make an agreement at this point, because that’s where it has leverage,” he added.

“Having much more visa access to the UK will be one of the key factors in getting a deal through.”

“If the two prime ministers meet face to face later this year for a further push – it’s really going to be that issue of services access in exchange for better access for Indian nationals in the UK.”

“It is a larger export market that is rapidly growing in prosperity.” Also, India hasn’t signed many trade treaties, therefore the UK is near the front of the line here.”