The UK has almost finalised a trade deal with India amid reports that issues over British work visas have largely been resolved.
Britain and India have speeded up talks for a free trade agreement between the two countries amid growing economic instability due to tariffs imposed by Donald Trump.
Nirmala Sitharaman, India’s finance minister, said on a visit to London this week that New Delhi was actively pursuing trade pacts in response to the US President’s policies.
The issue of visas for Indian workers has long been a contentious issue in the negotiations.
But this has reportedly now been resolved.
A Government source told the Guardian that “we are nearly there”, adding “we are as close as we’ve ever been, but conversations at the political level cut both ways.”
Business Secretary Jonathan Reynolds and Ms Sitharaman hosted a business roundtable with leaders from the financial and business sectors including Tide, HSBC, Aviva, Vodafone, WNS, and Mizuho International.
A briefing from the trade department earlier this week heard that 90% of the deal with India had been agreed, with some remaining questions related to whisky, cars and pharmaceuticals.
Speaking on Wednesday, Ms Sitharaman said there was a “great sense of positivity and dedication” to conclude the UK-India pact soon.
Ministers announced a package of £128million in new export agreements and investments after her visit, as well as other recent deals worth £271million.
Chancellor Rachel Reeves said ministers were pursuing trade deals with nations including India because it was “imperative we go further and faster to kickstart economic growth”.
Ms Reeves said on Wednesday: “In a changing world, it is imperative we go further and faster to kickstart economic growth.
“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 as part of our Plan for Change.
“Our relationship with India is longstanding and broad and I am delighted with the progress made throughout this dialogue to develop it further.”
Mr Reynolds added: “Both the UK and India are committed to delivering economic growth and giving businesses the confidence and stability they need to expand.
“That is why we are continuing to negotiate towards an ambitious trade deal that unlocks opportunities both at home and abroad for British businesses.”
