Prime Minister Rishi Sunak told his ministers on Tuesday he would only reach a trade agreement with India when it benefited the whole of Britain, addressing his top team before travelling to the G20 summit in India later this week.
"He said negotiations around a free trade deal were progressing and that he would only agree an approach which worked for the whole UK," his spokesperson told reporters.
India sees a British trade deal as crucial as it aims to become a bigger exporter, while the UK, keen to expand trade opportunities after leaving the European Union, would get wider access for its whisky, premium cars and legal services.
Still to be agreed are issues such as intellectual property rights, rules of origin and an investment treaty, and campaigners urged Britain not to demand any provisions that might undermine India's generic drugs industry and make its products more expensive.
Last month, Finance Minister Nirmala Sitharaman said that India hopes to conclude talks over a free trade deal with Britain by the end of this year.
"I won't be wrong in saying a free trade agreement with UK is very close," Ms Sitharaman said.
