Sajid Javid to start post-Brexit trade talks with India

UK Business Secretary Sajid Javid is to hold preliminary trade talks with Indian ministers in Delhi on Friday, to kick off Britain's post-Brexit negotiations with countries outside the European Union (EU).

The negotiations are expected to run for years in order to establish new trade deals with countries to replace the 52 trade agreements Britain have via the EU. Javid was due to meet Arun Jaitley, the Indian finance minister and Nirmala Sitharaman, the commerce and industry minister.

During the EU referendum campaign Leave supporters said the UK would be able to make quick trade deals with other big economies outside the EU. So far the EU had failed to reach an agreement with India.

The business ministry said there will also be discussions with China, Japan South Korea and the US in the coming months.

“Following the referendum result, my absolute priority is making sure the UK has the tools it needs to continue to compete on the global stage," Javid said.

“That is why I am in India today to launch these initial trade discussions. There is a strong bilateral trade relationship between our two countries and I am determined that we build on this. Over the coming months, I will be conducting similar meetings with other key trade partners, outlining the government's vision for what the UK's future trade relationship might look like."

Chancellor George Osborne reportedly, met a representative from the Chinese government on Thursday in London. Osborne is set to make a four day trip to the G20 finance ministers meeting in China at the end of July and will visit several cities in China.

The government said it will hire about 300 specialist staff for post-Brexit trade negotiations. Philip Hammond, the foreign secretary, told a committee of MPs on Thursday the UK may have to hire trade negotiators from abroad due to a shortage in the UK.

"The government will have to acquire additional trade negotiation resources. We will look to friendly governments to assist us, as well as seeking to hire the best resources available on the open market," he said.

In 2014, 44% of British exports went to the EU in 2014 worth £228.9bn compared with just 10% to commonwealth states worth £47.8bn.

Direct investment from India between 2014 and 2015 created 7,730 jobs and trade was worth £16.5bn in 2015, the BIS added.

Out of the G20 countries Britain was the biggest investor in India in 2015. India is the third-largest foreign direct investor in Britain.

According to accounting firm Grant Thornton, Indian-owned companies in the UK employ about 110,000 people and had revenue of about £26bn in 2015.

Tata, one of the India’s biggest companies in the UK, owns Jaguar Land Rover which employs about 33,000 people, and Tetley Tea which employs about 1,000 people.

Javid will also meet board members at Tata which owns Tata Steel UK, which owns the blast furnace in Port Talbot in Wales. He is expected to discuss continuing attempts to find a buyer for Tata Steel and the company's pension fund.