New PM may find it hard to resist banking an early trade win with India

Wednesday 10th August 2022 06:51 EDT
 

The UK-India trade talks, which began in January, are already in full flow. The two sides finished the fifth round of negotiations recently, and are working towards the October 24 deadline that Boris Johnson - recently ousted by his own party and preparing to exit the stage in September - set with Indian Prime Minister Narendra Modi earlier this year.

Whoever replaces Johnson as prime minister may find it hard to resist banking an early trade win with India - but firms fear the consequences of a rush job.

Conservative Party leadership contenders Liz Truss and Rishi Sunak look to be holding fast to the outgoing UK prime minister's Diwali deadline for landing a free-trade agreement with New Delhi.

A deal would mark another post-Brexit prize for a UK eager to show its independent trading mettle, and a flag-waving quick win is likely to prove a tempting prospect as the new leader grapples with ongoing economic and political turmoil back home.

There are signs New Delhi sees the UK's current political turmoil as an opportunity, and that Modi’s officials are attempting to bounce Britain into wrapping talks even before Johnson leaves No. 10 Downing Street.

The UK's trade department says a landing zone for a comprehensive deal that respects the sensitivities and domestic processes of both sides is coming into sight.


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