India is discussing a free trade pact with the UK. This could include an agreement on services and financial markets and could be signed after Britain negotiates its Brexit deal with the European Union. Britain is trying to build safeguards into its Brexit pact which would allow Indian companies to continue to operate out of London and access the European markets.

Indian firms employ more than 1.1 lakh people in the UK. Britain is trying to continue its hold on Indian businesses post-Brexit by wooing them with technological partnerships in high-tech areas such as low-carbon automobile engines, graphene engineering and aerospace. Britain is interested in expanding its footprint in the financial sector in India and in projecting London as the first choice for Indian companies raising global finance, so a deal involving financial markets is important for Britain.

India, in its bid to pave the way for a post-Brexit deal, will allow 100 per cent foreign direct investment in insurance brokerages. India is also keen on deals to ease the export of software as well as the movement of IT and healthcare professionals. India’s textile and garment sectors are also extremely keen on a trade pact with the UK. These sectors are major forex earners, after software and gems and jewelry.