In a historic move, the UK and India have agreed to a comprehensive trade deal designed to bolster trade and investment between the two nations. This agreement follows three years of intricate negotiations and represents the UK’s most substantial trade pact since leaving the EU in 2020. The deal, celebrated by both Prime Minister Sir Keir Starmer and Indian Prime Minister Narendra Modi, is expected to increase UK-India trade by £25.5 billion per year by 2040.
UK and India Seal Landmark Trade Agreement, Boosting Economic Ties
UK and India Seal Landmark Trade Agreement, Boosting Economic Ties
The UK and India have finalized a significant trade deal aimed at improving exports and reducing tariffs on various goods, enhancing bilateral economic relations after three years of negotiations.
The agreement facilitates easier export of UK products like whisky and cars to India while reducing taxes on Indian clothing and footwear exports to the UK. The British government has emphasized the potential positive impacts on economic growth and job creation for businesses in both nations, as it opens new opportunities for firms to compete in each other's markets.
Once the deal takes effect—anticipated to start within a year—UK consumers can expect lower tariffs on various products coming from India, including clothing, cars, and foodstuffs. The deal also introduces reduced tariffs of 75% on gin and whisky, with further reductions in subsequent years, alongside a significant decrease in tariffs on more expensive UK-made cars exported to India.
Additionally, the deal allows certain workers from both countries to be exempt from paying social security contributions, a provision hailed as unprecedented by Indian authorities. However, opposition voices have raised concerns regarding potential impacts on UK businesses and workers, questioning the implications of the negotiations under the current Labour leadership.
As India continues its rapid rise as a global economic powerhouse, poised to become the third-largest economy, the trade agreement is viewed as a strategic alignment beneficial to both nations. With free trade increasingly under scrutiny globally, this deal stands as a testament to collaborative trade efforts and opens many avenues for business expansion and innovation across borders.
Once the deal takes effect—anticipated to start within a year—UK consumers can expect lower tariffs on various products coming from India, including clothing, cars, and foodstuffs. The deal also introduces reduced tariffs of 75% on gin and whisky, with further reductions in subsequent years, alongside a significant decrease in tariffs on more expensive UK-made cars exported to India.
Additionally, the deal allows certain workers from both countries to be exempt from paying social security contributions, a provision hailed as unprecedented by Indian authorities. However, opposition voices have raised concerns regarding potential impacts on UK businesses and workers, questioning the implications of the negotiations under the current Labour leadership.
As India continues its rapid rise as a global economic powerhouse, poised to become the third-largest economy, the trade agreement is viewed as a strategic alignment beneficial to both nations. With free trade increasingly under scrutiny globally, this deal stands as a testament to collaborative trade efforts and opens many avenues for business expansion and innovation across borders.
