As India is optimistic about concluding the much-awaited trade deal with the UK, Commerce Minister Piyush Goyal has asked Britain not to put a gun to India’s head by imposing a deadline.
According to a report in the Financial Times, Goyal said past discussions showed that the two sides were « fairly in agreement » on most of the issues discussed. He added that a deal could « be done very quickly. »
However, Goyal, pointing to former British Prime Minister Boris Johnson’s decision to say a deal would be finalised within six months in 2022, said India does not think there should be a deadline for negotiations.
« We never discuss a free trade agreement with any country or group of countries with a gun to our head, » Goyal told the financial daily.
On the day of the British election, Goyal said the Labour Party had assured that it would continue negotiations, but he stressed the importance of a « fair, just and balanced » deal. He did not say when the deal would be reached. Goyal said it could be reached quickly or it could take time.
« Personally, if you ask me, I don’t see any big problems in the FTA anymore, except that we have opened up the services side very significantly, based on certain commitments that we expect from the UK, » he told the daily, adding that the size of India’s population, different levels of aspiration and growth projections require a proper balance in the deal.
Negotiations between India and the UK for a trade deal have been ongoing since January 2022. Newly elected Prime Minister Keir Starmer told Prime Minister Narendra Modi in a call after the election victory that he was ready to strike a deal that suited both sides.
The UK wants Indian tariffs to be cut on exports such as whisky and cars, and rules that prevent its financial and professional services companies from operating in India to be relaxed. India, for its part, wants market access for goods such as textiles, as well as better conditions for its citizens to work and study in the UK. India wants the UK to consider the growth opportunities it will enjoy in the world’s most populous country, which is expected to grow by more than 7% this year.