UK-India trade deal reportedly 90 per cent agreed, businesses told

The UK’s trade deal with India is reportedly 90 per cent agreed, businesses have been told, according to a report in the Guardian.

Firms were informed on a call with trade negotiators this week that some remaining issues included cars, pharmaceutical drugs and the whisky trade, the newspaper reported, with India currently the largest overseas market for the Scotch drink.

The Guardian also reported that the key issues of mobility and visas for Indian workers – which has proved tricky to resolve – has been concluded, according to a government source.

They reportedly said talks, which originally launched in January 2022, “are nearly there” and that “we are as close as we’ve ever been, but conversations at the political level cut both ways”.

However, it’s understood that remaining issues include some of the trickiest areas to negotiate.

But it’s now hoped the UK will secure the long-awaited free trade agreement (FTA) – which Boris Johnson once pledged would be a “deal by Diwali” – with India.

The deal is seen as a post-Brexit benefit for the UK’s firms to trade with the Asian nation’s growing middle class and 1.4bn population. 

Reeves and Sitharaman

Progress comes amid US President Donald Trump’s imposition of tariffs on the UK and around the world, sparking market instability and fears of a global trade war and recession.

Chancellor Rachel Reeves and Indian finance minister Nirmala Sitharaman met on Wednesday and agreed £128m worth of new export deals and investments with India, as part of the 13th UK-India Economic and Financial Dialogue (EFD).

They signed a joint statement for a package that includes the new deals as well as recent ones worth £271m, such as plans for Paytm, India’s largest digital payment app, to invest in the UK and for HSBC Bank to expand its presence to 34 cities in India from 14 currently.

Reeves said: “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.

“Our relationship with India is longstanding and broad and I am delighted with the progress made throughout this dialogue to develop it further.”

Business and trade secretary Jonathan Reynolds said:  “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.”

India LSEG

The UK and India’s financial sectors are also looking to boost investment by allowing companies to list shares on both the London Stock Exchange and India’s National Stock Exchange or Bombay Stock Exchange.

The proposal set out by the India-UK Financial Partnership (IUKFP), a group of investors and policymakers from both countries, would require Indian regulators to amend existing rules.

The group also called for both governments to find an agreement that would allow investors to avoid double taxation.

Standard Chartered chief executive Bill Winters, who is also the UK chair of the IUKFP, said the recommendations set out would boost investment and foster the Chancellor’s growth plans.

The London Stock Exchange currently has a similar arrangement in place with the New York Stock Exchange that allows cross-listing.