INDIA is set to restore Britain’s balance of trade post-Brexit, according to the Commonwealth
The UK will be able to abandon official rules enforced by the European Union, which impose significant tariffs on the trade relationship between Britain and India.
Currently, British businesses exporting to India face tariffs worth 14.8 per cent, while Indian exports into the UK face tariffs worth 8.4 per cent on average.
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The two leaders held talks on Brexit negotiations
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European Council President Donald Tusk gestures to members of the media as he leaves 10 Downing street after talks with British Prime Minister Theresa May in central London
But a report by the Commonwealth titled, "Brexit: Opportunities for India", claims Britain will be able to increase its exports to India by more than £2billion per year, reaching a staggering £6.3billion.
Imports from India to the UK will rise by around £1billion, meaning the UK’s balance of trade will be improved.
The report’s author, Rashmi Banga, suggests the UK will be able to get its free trade agreement (FTA) with India up and running before the EU does, giving Britain a further edge.
She writes: “This proposed India–UK FTA may be easier to negotiate than the India-EU FTA, as some of the sticking points in an India-EU FTA may be easier to resolve.”
The report, according to the Telegraph, said: "Given the slow pace of negotiations over [a trade deal] with the EU, Brexit provides a fresh opportunity to India to strengthen its economic relationship with the UK through an India–UK trade and investment agreement."
Iain Duncan Smith, the former Conservative leader, added: "Remainers say it takes forever to get a trade deal. It takes forever if you are 27 countries trying to reach an agreement.
"When you are dealing one country to another it is much easier. We can do deals in a matter of months.
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"Once we've left the EU we are free to look at this from a parliamentary standpoint and can get rid of EU regulations that aren't in our interests. We can get what's best for Britain."
Donald Tusk EU President, met with Mrs May to discuss future deals
Theresa May has reportedly said a free trade deal with India will present a huge opportunity for whisky producers, who currently face 150 per cent tariffs on exports.
Liam Fox, the International Development Secretary, is currently in talks with India about future trade deals as well as China, New Zealand, South Korea, Turkey and the Gulf states.