India-UK FTA by Diwali still remains a possibility: UK government sources

2 min read . Updated: 14 Oct 2022, 05:58 AM IST Sounak Mukhopadhyay

British Prime Minister Liz Truss walks outside Number 10 Downing Street, in London, Britain, October 12, 2022. REUTERS/Hannah McKay (REUTERS) — British Prime Minister Liz Truss walks outside Number 10 Downing Street, in London, Britain, October 12, 2022. REUTERS/Hannah McKay **(REUTERS)**

The issue of business mobility is at the core of what India would consider a win-win deal.

The majority of the India-UK free trade agreement (FTA) negotiations should be done by Diwali, UK government sources said on October 13. The two countries are currently negotiating a "high-ambition" deal that may contribute to a ₹28,000-crore (GBP 3-billion) increase in UK economic growth by 2035.

Business mobility is distinct from immigration because it involves temporary entry for talent to work for a set period of time in a trading partner nation, according to officials with knowledge of the negotiations. Business mobility also sought to realign the mobility debate by establishing a distinction between long-term migration and temporary business visas.

“Any commitments we seek on temporary entry will aim to encourage the best and brightest talent in India to temporarily work in the UK," official sources added.

Since the issue of mobility is at the core of what India would consider a win-win trade agreement, UK Home Secretary Suella Braverman earlier expressed her concerns about what she called an "open borders" approach with India as part of an FTA. Many people feared that her comments might have caused the FTA negotiations to veer off course from their original October deadline.

Media reports earlier suggested that, as a result of the Indian government being incensed by Braverman's remarks questioning the country's response to visa overstayers, the deal was on the “verge of collapse".

Although the UK wants to seal the ambitious trade agreement and hopes to wrap up negotiations by Diwali, it is obvious that the Liz Truss government will not compromise quality for expediency and will only sign when a deal that serves both nations' interests has been reached, a Truss spokesperson earlier told reporters.

In the meantime, India is requesting relaxed visa requirements for its skilled workers and wants a fair, equitable, and mutually beneficial free trade pact with the UK, according to sources in New Delhi.

“We do not want open borders. We just want temporary visas for our talented professionals for business purposes to promote services exports. India wants a fair, equitable and mutually beneficial FTA with the UK," a source added.

According to the UK government, any agreement with India on visas and migration would fall within the country's wider points-based immigration system and be subject to Cabinet approval.

While the UK’s Department for International Trade (DIT) refused to comment on “live negotiations", it did not rule out the prospect of the Diwali deadline being met and said the deadline was “focusing efforts and driving progress".

(With agency inputs)

ABOUT THE AUTHOR

Sounak Mukhopadhyay

Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and social media. Before working with digital news publications, he worked as a freelance content writer.