India, UK see trade deal possibly in December after poll results

Provisions for bad loans and contingencies fell to Rs 56 crore during the quarter as against Rs 105 crore reserved for the year-ago period.

There are still some differences around whether taxation will be included in a proposed investment protection pact, as well as the UK’s demand that tariffs be cut on electric vehicle exports to India, one of the people said, asking not to be identified as the deliberations are private. There isn’t any firm deadline but an announcement could be made after the vote concludes and results are out Dec. 3, another person said.

The deal, when concluded, would be a major milestone for two of the world’s largest economies that share a long history. British Prime Minister Rishi Sunak would likely showcase the deal as a benefit of Brexit, while it would help his Indian counterpart Narendra Modi tout more local manufacturing and job creation when he seeks a third term next year.

India’s Trade Ministry didn’t reply to an email seeking comment. A spokesperson for the UK Department for Business and Trade said both administrations “continue to work towards an ambitious trade deal that works for both countries.”

Pending Issues:
UK wants concessions for electric vehicle imports; talks are on around what proportion of imports could be offered such benefits, one of the people said
UK is seeking — and India is trying to avoid — the inclusion of tax issues in an investment protection proposal. The UK’s ask is shaped by bitter disputes faced by some of its firms that invested in India, the person added
Long-pending issues are India’s ask for longer-term post-study visas for its youth who attend university in the UK; the UK wants its lawyers to be able to practice in India
Easier market access is being sought for British farm goods such as apples, cheese
The two nations had previously softened their positions on several issues, with India agreeing to cut tariffs on British cars and scotch whiskey, and Britain prepared to relax some visa rules for Indian professionals.

The free trade deal — India’s most ambitious and modern to date — could offer a template for similar accords with others including the European Union.