Following Brexit, India is considering recalibrating its strategy, including renegotiating its tariff offers, for the proposed free trade agreement (FTA) with the EU, with demands from key sectors for a separate trade pact with the UK gathering pace, according to sources. But with both the EU and the UK busy grappling with Brexit, serious trade negotiations are unlikely to start anytime soon.

Said Textiles secretary Rashmi Verma that Britain continues to be an important market for India, as it makes up for around 23 per cent of the EU demand for Indian textiles and garments. The Ministry of Textiles has requested the commerce ministry to look into the possibility of a bilateral preferential trade agreement (PTA) with the UK.

The UK accounts for over a half of India’s software services exports to the EU, 23 per cent of key engineering and electrical goods exports and 16 per cent of jewellery, precious metal and stones exports. So, senior industry executives from these sectors endorse an FTA or PTA with the UK. Britain alone accounted for 3.4 per cent of India’s goods exports in 2015-16, while the EU – including the UK – made up for 17 per cent.

Meanwhile, said Nasscom president R Chandrashekhar, once the current storm settles down, the UK will also be looking to compensate itself for no longer being part of the EU trade bloc.