India to seek UK trade pact, easier worker visas during Johnson's visit

India is keen to finalize a trade pact with Britain by October and will seek easier access to visas for skilled workers and students when U.K. Prime Minister Boris Johnson visits the country later this week, according to a person with knowledge of the matter. 

Johnson, who kicks off a two-day visit starting Thursday, will discuss lowering import duty on British whiskey and scotch in his talks with Indian Prime Minister Narendra Modi, the person said, asking not to be identified as the discussions aren’t public. The two leaders are likely to set a deadline for a comprehensive economic partnership agreement, the person added.

The British prime minister’s trip comes just weeks after Foreign Secretary Liz Truss visited New Delhi in a bid to convince the Modi government to condemn Russia’s invasion of Ukraine and join efforts to economically isolate Moscow. The two heads of state are expected to discuss the issue, apart from bolstering trade ties, the person said.  

India and Britain launched negotiations for a free trade agreement in January, with an aim to double the trade by 2030. Total trade between the two nations stood at over $16 billion in 2021-22, according to Indian government data.

The talks started in January are progressing well, Johnson’s spokesman Max Blain told reporters on Wednesday, while declining to share details. An email sent to India’s trade ministry spokesperson was not immediately answered.

While India wants duty concessions for other goods as well, including textiles, it will also explore deeper integration of value chain in the automobiles and auto parts segment. The U.K. is keen for greater access for its companies in India’s accounting and legal services sector -- a red line given the massive push back from domestic players. 

The agreement is likely to be much more broad-based than the previously discussed interim deal, the person said. Two rounds of negotiations have already been held while the third round is scheduled next week.

The trip is Johnson’s first since becoming prime minister in 2019. He was originally due to visit the country in April 2021, but that trip was canceled after Covid-19 cases surged in India.