Will Rishi Sunak visit India this month? It depends how FTA negotiations pan out
Indian and British negotiators are holding the 14th round of talks in New Delhi after a broad understanding on 24 of the 26 chapters in the proposed trade deal
NEW DELHI: A planned visit by British Prime Minister Rishi Sunak to India at the end of October is being linked to positive outcomes in ongoing negotiations between the two countries on a free trade agreement (FTA), people with knowledge of the discussions said on Monday.
Indian and British negotiators are currently holding the 14th round of talks in New Delhi after having reached a broad understanding on 24 of the 26 chapters in the proposed trade deal, two of the people cited above said on condition of anonymity. If there is further forward movement in the discussions, Sunak is likely to go ahead with the visit, the people said.
Neither side has officially confirmed or announced the visit, which is expected to begin on October 28. If Sunak goes ahead with the visit, it will be his second trip to India this year.
Sunak, who was in New Delhi last month to attend the G20 Summit, and his Indian counterpart Narendra Modi had agreed at a bilateral meeting that their negotiating teams “would continue to work at pace” towards an FTA. A statement issued at the time by India’s foreign ministry said Sunak accepted Modi’s invitation for a bilateral visit at “an early, mutually convenient date”.
If the visit goes ahead, Sunak is also expected to travel to Lucknow to watch the India-England game in the Cricket World Cup on October 29, the people said.
While India and the UK have narrowed divergences on many matters in the FTA negotiations since last year, some contentious issues are holding up an agreement, the people said. The British side is seeking greater access to the Indian market for some five items, including dairy products, electric vehicles and Scotch whisky, the people said.
On the Indian side, the sticking points include rules of origin for goods and mobility for professionals, the people said. In view of the British side’s reluctance to go beyond the current figure of about 100,000 work visas issued to Indians annually, the Indian side has pointed out that skilled workers in many sectors no longer need long-term visas as they are usually deployed for shorter periods of time, the people said.
Besides the issue of business-related mobility, including allowing skilled workers to change jobs, the two sides have been able to reach a broad understanding on the two other clauses related to labour standards and green and sustainable business practices, the people said.
“Some of the matters require interventions at the political level, which cannot be ruled out,” one of the people said, hinting at a minister-level intervention.
A 30-member British delegation arrived in New Delhi for the talks shortly after the completion of the 13th round of negotiations in the UK. Commerce secretary Sunil Barthwal was in London last week for the talks.
“Negotiations are now on in New Delhi,” the person said, adding the 14th round started immediately after the conclusion of the previous round. This was a pointer to the importance being given by the two sides to finalising an FTA so that Sunak’s visit could go ahead, the people said.
“Both sides are attempting to close the remaining issues, such as rules of origin. Everything is at the closure level,” a second person said.
Besides the FTA on goods and services, the two sides are holding talks on a bilateral investment treaty.
“We can’t say the 14th round is the final round. Nothing is final till the FTA is finalised,” a third person said, pointing to how the two sides had missed earlier deadlines to conclude the trade deal by Diwali last year and by Holi earlier this year.