UK negotiators fly to India in last-ditch effort to seal free trade deal

British negotiators have flown to India in a last-ditch effort to seal a trade deal amid concerns that Narendra Modi’s government intends to stick with its Labor government.

A negotiating team led by a senior civil servant flew out on Monday and was tasked with resolving the goods and services chapter, one of the thorniest outstanding issues in the talks.

Boris Johnson and Liz Truss are also seeking a multi-billion pound free trade agreement (FTA) with India, a booming economy of 1.4 billion people. It is seen as one of the biggest Brexit prizes.

A British government official said the British delegation was making “a last-ditch attempt to seal a free trade agreement before the Indian campaign suspended negotiations.”

But they added: “UK negotiators have heard from India that they will get more visas and social security from Labour. Such is the impact of Labour’s trip to India and meeting with trade minister Piyush Goyal.”

Shadow business secretary Jonathan Reynolds met Goyal during a visit to Delhi last month. His visit has raised eyebrows among government officials who fear India may decide to hold out until after the UK election in a bid to get a better deal from Keir Starmer’s government. Labor is expected to win a majority.

Visas and social security are the most politically sensitive parts of the proposed agreement. India wants more visas for Indian workers and a deal to recoup the social security contributions they paid while working in the UK.

For Rishi Sunak, visas will be particularly tricky as Tory MPs are deeply worried about net migration into the UK, which is set to hit a record high in 2022.

Some around Commerce and Trade Minister Kemi Badenoch are increasingly pessimistic about the India deal and believe a free trade deal with the Gulf Cooperation Council is within reach. Badenock met with trade ministers from all six Gulf Cooperation Council countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) in Abu Dhabi last week.

Talks between Britain and India have been in the final stages for weeks, with both sides now privately warning that time is running out before India’s general election campaign begins.

Indian general elections are expected to be held in April or May. The Electoral Commission is expected to set the exact date in the coming weeks, with trade talks suspended once the campaign begins.

If a British general election is held this spring, the coming weeks may be Sunak’s last chance to seal a deal. But if it happens in the fall, as expected, that would leave a narrow window for a deal in the summer.

The UK and India are currently in the 14th round of negotiations, which started on January 10. Johnson had originally hoped to sign the deal before Diwali in October 2022.

A spokesman for the Department of Business and Trade said: “We have always been clear that we will only sign a deal that is fair, balanced and ultimately in the best interests of the British people and economy. The UK and India remain committed to reaching a deal that benefits both countries. ambitious trade deal.”