More impetus to India-UK FTA talks likely

London: As Rishi Sunak takes over as Britain's first Indian-origin Prime Minister on Tuesday, there is renewed hope that the India-UK free trade agreement (FTA) will get a much-needed impetus after the Diwali deadline for draft completion was missed amid political turmoil in the UK. While the October timeline was set by former Prime Minister Boris Johnson during his India visit in April, Sunak is on the record expressing his commitment to an FTA with India, while Chancellor of the Exchequer at No. 11 Downing Street.

He has flagged financial services as a particularly 'exciting' aspect of the bilateral trade relationship and pointed to enormous opportunity for both countries in fintech and the insurance sector. "I'm very supportive of India playing an increasingly influential role in the region, and indeed, in the world as a massive economy and the world's largest democracy and an FTA would prove a greater champion of that cause," Sunak told reporters back in July.

"Financial service is an area where there's enormous opportunity for both of our countries. India's goal is to spread insurance across the entire economy, because insurance is a great thing for enabling protection for individuals and growth. We can help with that in the UK, because we have a fantastic insurance industry," he said. The City of London Corporation, the financial hub of the UK capital, expressed the hope that Sunak's focus on services would take the FTA in the right direction. "An India trade deal could be one of the most ambitious and commercially meaningful deals to the UK," said Chris Hayward, Policy Chairman at the City of London Corporation.

Much-awaited deal missed deadline of Oct set by former British PM Boris Johnson; With Rishi Sunak taking charge as new PM, analysts predict political stability in the UK and it may give more thrust on India-Britain trade pact talks