Trade talks with India will be resurrected on Monday as the Business Secretary vows to put Scotch whisky on every table in Delhi.
Jonathan Reynolds will meet his opposite number in the Indian capital to discuss improving trade with what will be the world’s third largest economy by the end of the decade.
Striking a trade deal with India is one of his ‘top priorities’ in his role, and he said he was prepared to take ‘tough decisions’ to make it happen.
Mr Reynolds told the Mail: ‘Getting a trade deal with India is one of my top priorities since getting into Government and taking this role.
‘I want to see more bottles of Scotch whisky on countertops in Delhi, crates of fine British goods sold to India’s growing middle class, and exciting new opportunities for our world-leading services firms to do more business in markets that have been highly protected and closed off to them for so many years.’
Mr Reynolds’ trip will be the 15th round of the UK-India trade talks since negotiations were put on hold since the Indian elections last year.
A deal with India is considered one of the biggest post-Brexit prizes, with some of the biggest deals on offer a reduction in tariffs on Scotch whisky and car exports to India.
Agreements on legal services and manufacturing could also yield benefits for both sides, though the question of whether the UK would need to offer more visas to Indian workers remains.
Jonathan Reynolds will meet his opposite number in Delhi as he aims to strike a trade deal with India
Mr Reynolds has said he wants to see more bottles of Scotch whisky on countertops in Delhi (file photo)
India is forecast to have the highest growth rate in the G20 for the next five years and set to become the world’s third biggest economy by 2028.
With an expected 95 million strong middle class by 2035, ministers see opportunities to improve trade opportunities for British businesses.
However, negotiations have been hampered by disagreements on visas and better access for services firms. India also wants an agreement to protect its workers from national insurance contributions.
In April 2022, Boris Johnson promised a UK-India free trade agreement ‘by Diwali’ that year but the reality proved harder to deliver.
Despite Mr Reynolds promising to take ‘tough decisions’, it will be difficult for Labour to compromise on visas as it needs to be seen as tough on migration.
Mr Goyal is also considered to be one of the toughest trade negotiators in the world, upholding India’s protectionist approach to trade.
During his two-day visit, Mr Reynolds will meet Mr Goyal at Delhi’s National Crafts Museum. The pair will also visit BT India’s office in Gurugram – one of the largest UK employers in India.
Meanwhile, Investment Minister Poppy Gustafsson will address investors in financial capital Mumbai and tech hub Bengaluru.
The UK and India are currently the sixth and fifth largest global economies respectively, with a trade relationship worth £41 billion and investment supporting over 600,000 jobs across both countries.
View of the skyline of New Delhi. During his two-day visit, Mr Reynolds will meet Mr Goyal at Delhi’s National Crafts Museum
Mr Reynolds is hoping a deal with increase the UK’s exports to India, improving trade for life sciences firms.
More than 600 UK tech and life science companies are already based in India, doing everything from supplying virtual lessons to pupils in disadvantaged communities and helping patients recover from medical surgery.
Their deals and partnerships are valued at tens of millions of pounds, and Mr Reynolds will be hoping to increase this.
UK businesses exported a total of £17 billion goods and services to India in the 12 months to September 2024.
