£2bn Brexit boost in exports to India

BRITAIN will be able to increase its exports to India by £2 billion per year after Brexit by axing EU red tape, an analysis has found.

The UK currently faces significant tariffs on trade with India because of the EU failure to agree a free trade deal.

The deal has been held up for a decade by regulations on intellectual property and data protection, with which India is refusing to comply. But after Britain leaves the EU, the deal can go ahead because British negotiators regard the disputed rules as unnecessary.

A report by the Commonwealth, whose 52 member nations include India and the UK, says that Brexit will present a significant “opportunity”.

The study says: “Given the slow pace of negotiations over [a trade deal] with the EU, Brexit provides a fresh opportunity to India to strengthen its economic relationship with the UK through an India–UK trade and investment agreement.”

It suggests that the UK will be able to show more “flexibility” than the EU on red tape and increase trade between the two nations as a result.

Iain Duncan Smith, the former Conservative leader, said: “Remainers say it takes for ever to get a trade deal. It takes for ever if you are 27 countries trying to reach an agreement.

“When you are dealing one country to another it is much easier.” The re- port, Brexit: Opportunities for India, says that the UK and India can secure a far-reaching deal which will see the value of British exports to India rise from £4.2 billion to £6.3 billion, an increase of £2.1 billion, or 50 per cent.

Imports from India to the UK will rise by around £1 billion, meaning the UK’s balance of trade will be improved.

At present, British businesses exporting to India face tariffs worth 14.8 per cent, while Indian exports into the UK face tariffs worth 8.4 per cent. The report’s author, Rashmi Banga, suggests the UK will be able to get its free trade agreement with India up and running before the EU does, giving Britain a further edge, as sticking points “may be easier to resolve”.

The Department for International Trade is auditing potential barriers to free trade deals.

The Daily Telegraph has launched a campaign for the Conservatives to make a manifesto commitment to axing EU red tape after Brexit.