UK and India move on free trade deal

Two countries sign off on a series of commercial agreements worth up to £1b

Britain and India have laid the ground for a possible post-Brexit bilateral free trade deal and signed off on a series of commercial agreements worth up to £1 billion (Dh5.23 billion), according to Downing Street.

Brexit opponents claim the chances of Britain securing a trade deal with India superior to an Indian-EU deal are a fantasy unless the UK makes major concessions on Indian skilled labour accessing UK markets. Karan Bilimoria, the British Indian entrepreneur and life peer, insisted Modi’s priority was a free trade deal with the EU.

Britain is nevertheless lavishing diplomatic attention over Narendra Modi, the Indian prime minister, thanking him for breaking a decade of Indian indifference to the Commonwealth by personally attending the Commonwealth summit and so giving the post-colonial assembly greater relevance.

Absence

Modi did not attend the Commonwealth summit in Malta two years ago, and his predecessor, Manmohan Singh, missed the 2011 summit in Australia and its successor in Sri Lanka in 2013.

But Modi, who was personally courted by both Prince Charles and Theresa May to attend the talks, regards the Commonwealth as a useful multilateral forum from which China, India’s great rival, is absent. He is also looking for allies in any trade war with the US.

In common with most Commonwealth leaders, Modi also sees the visit as a chance to woo the City of London and court foreign direct investment.

The Indian prime minister has been rewarded for his commitment to the Commonwealth with Wednesday’s lengthy bilateral meeting with May, an audience with the Queen, a visit with Prince Charles to the Science Museum and a commitment that British intelligence will help fight Pakistan-based militant groups.