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British finance minister Philip Hammond flew in to New Delhi for
talks with Indian counterpart Arun Jaitley, days after Prime
Minister Theresa May triggered the start of the Brexit process
after last June's referendum vote to quit 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.
"We have made the decision that we will not be part of the
structure of the European Union, but we've also made very clear
that we want to negotiate the maximum possible open trade
relationship with the European Union," Hammond told a news
conference after a joint economic and financial dialogue.
"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."
HUGE ASPIRATION
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 favoring free
trade.
May met 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.
Still, Jaitley struck a positive note by saying, "The United
Kingdom, post-Brexit, is looking at a different level of
relationship with India. And there's a huge aspiration in India
itself also, to add to, and improve on, this relationship."
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 invest 120 million pounds ($149 million) in 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 'masala'
bonds for Indian companies to 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.
(Writing by Douglas Busvine; Editing by Malini Menon and
Clarence Fernandez)
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