advertisement
India and Britain on Tuesday talked about their prospects of developing a new trading relationship, as their finance ministers met to prepare for the United Kingdom's exit from the European Union.
Hammond played down the risks of a so-called "hard Brexit", in which Britain would lose access to the markets of the bloc's other 27 nations if the two sides cannot reach a consensus deal within a two-year deadline.
Addressing a news conference after a joint economic and financial dialogue, Hammond said:
"We hope to be able to negotiate a deep and special relationship with the European Union that will allow us to go on trading and investing in each other's economy, but at the same time allow us to rebuild our relationships with our partners and allies around the world”, he added.
May received a cool reception on her first visit to India last November, with Prime Minister Narendra Modi stressing the importance not only of trade, but also of freedom of movement for his country's skilled workers.
That was a long-term target, he said.
Sixty percent of work visas were granted by Britain to Indian nationals - more than all other countries combined - while the number of Indians studying in the UK was rising again after a crackdown on bogus courses, he added.
In India, the world's fastest-growing large economy with a population of 1.3 billion, Britain has a massive market opportunity - but also a counterpart not known for favouring free trade.
Still, Jaitley struck a positive note by saying:
No formal negotiations on a bilateral free trade agreement would be possible until Britain has formally left the European Union, but Hammond said the two sides would have a "deep discussion" in the meantime.
In a joint statement, the ministers highlighted a pact for each country to put 120 million pounds ($149 million) into a joint fund under India's National Investment and Infrastructure Fund to invest in energy and renewables.
They also discussed efforts to make India's rupee currency more freely tradeable on international markets, and promote so-called 'masala' bonds, by which Indian firms borrow in their own currency from investors in the City of London.
The National Highways Authority of India, the Indian Renewable Energy Development Agency and the Indian Railway Finance Corporation all plan to issue masala bonds in the coming months, they added.
(This story has been published in an arrangement with Reuters.)
Join The Quint on WhatsApp. Type “JOIN” and send to 9910181818
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)