Trade deal with India remains ‘priority’, says UK business minister

A trade deal with India remains a “priority” for the UK, Business and Trade Secretary Jonathan Reynolds said during the Labour Party-led government’s flagship International Investment Summit in London which coincided with the launch of a new Industrial Strategy green paper. “The Gulf and India are the priority. I think there are clear economic and commercial reasons why we should pursue those,” Reynolds said at the Guildhall on Monday.

“Trade and international investment lie at the heart of our plan to drive growth for the whole country. That’s because we know the UK has so much potential as one of the largest, most open economies, a legal system that sets global standards, a regulatory environment with some of the strongest safeguards for investment and the greatest incentives for innovation. We benefit from a skilled and diverse workforce, supported by an immigration system that draws talent from around the globe,” he said.

The UK is negotiating a Free Trade Agreement (FTA) and Bilateral Investment Treaty with India, which has completed several rounds of negotiations under the previous Conservative government and is expected to pick up from the fourteenth round.

Soon after the general election in July, Reynolds indicated that teams would be “entering negotiating rooms as soon as possible” towards completing the FTA, which is aimed at significantly enhancing the GBP 38-billion a year bilateral trade partnership.

The Department for Business and Trade (DBT) indicated that while a timescale for the negotiations to restart remains unconfirmed, the minister’s comments reiterate the commitment to an India-UK FTA.

“Global investors should be in no doubt that under this new government, Britain is truly the best place to do business,” added Reynolds. It came as DBT confirmed nearly 38,000 jobs are set to be created across the UK after a total of GBP 63 billion of investment was announced at the International Investment Summit. “After the investments secured as part of this summit, my optimism for Britain burns brighter than ever. It’s a sign of confidence in the British economy. And it matters because it will support the growth of businesses big and small across the UK. Helping them create new jobs and making people better off,” said Chancellor Rachel Reeves, who will be presenting Labour’s inaugural Budget statement in Parliament later this month.

Meanwhile, the Industrial Strategy green paper consultation launched this week is aimed at providing stakeholders with the opportunity to inform Labour industrial plans.

Clare Barclay, CEO of Microsoft UK, has been named chair of the Industrial Strategy Advisory Council, which will inform the development of the Industrial Strategy through its expertise and latest evidence, working with business, trade unions, devolved governments, local leaders, academia and stakeholders.