India and the United Kingdom (UK) appear unlikely to finalise the much-anticipated trade deal by the end of October, as outstanding differences still need to be resolved.
While negotiations are ongoing with full vigour, it is presently impossible to determine a specific timeline for the deal. Notably, Indian officials are currently engaged in negotiations in London. This delay follows the missed deadline for the deal set last year during Diwali by former British Prime Minister Boris Johnson.
As both countries are heading into general elections next year, the opportunity for a trade agreement is rapidly diminishing. One of the reported reasons for this delay is a "lack of progress" in opening up Indian markets to British professional services, such as law and accountancy firms, as noted in a report by the Financial Times earlier in the day, citing unnamed British officials.
Officials who have been informed about the negotiations have stated that one of the factors contributing to the delay in the trade deal is the insufficient progress in opening up the Indian market to British professional services, particularly in the fields of law and accountancy.
“The discussions are not where we want them to be,” an official familiar with the talks said.
“The prime minister has said he will not sign a trade deal on arbitrary deadlines. He’s going to do the right thing for the country,” said another official.
These developments occur amidst heightened expectations for the signing of the free-trade agreement (FTA) between Prime Minister Narendra Modi and his British counterpart, Rishi Sunak, in New Delhi by the end of this month. Additionally, there were earlier anticipations of Sunak's attendance at the India-England cricket World Cup match in Lucknow on October 29, though no official announcement has been made regarding this.
Currently, the negotiations between the two nations are in their final stages, with both sides diligently working to resolve their differences. Last week, Commerce Secretary Sunil Barthwal expressed that the negotiations have reached an "advanced stage."
Within this negotiation framework, the UK is striving for increased opportunities in telecommunications, legal, and financial services within the Indian markets as part of the agreement.
