UK and India agree trade deal after three years of talks

The recent trade deal between the UK and India has paved the way for enhanced trade relations between the two countries. The agreement, which took three years to finalize, focuses on facilitating exports of key products such as whisky, cars, clothing, and footwear. It also aims to reduce taxes on India’s exports, providing a significant boost to both economies.

Prime Minister Sir Keir Starmer hailed the deal as a landmark agreement that will benefit British businesses and consumers. The trade between the UK and India, which totaled £42.6bn last year, is expected to increase by an additional £25.5bn annually by 2040 as a result of this agreement.

Indian Prime Minister Narendra Modi described the deal as a historic milestone that will catalyze trade, investment, growth, job creation, and innovation in both economies. Once implemented, UK consumers can expect to benefit from reduced tariffs on goods imported from India, including clothing, footwear, cars, foodstuffs, jewelry, and gems.

The agreement also includes provisions to promote economic growth and job creation through increased exports from UK firms to India. This will lead to lower tariffs on products such as gin, whisky, aerospace, electricals, medical devices, cosmetics, lamb, salmon, chocolates, biscuits, and higher value cars.

The UK government considers this deal as the biggest and most economically significant bilateral trade agreement since Brexit. Business Secretary Jonathan Reynolds emphasized the massive benefits for UK businesses and consumers, including reduced tariffs on gin, whisky, and luxury cars exported to India.

One notable aspect of the agreement is the three-year exemption from social security payments for Indian and British workers temporarily transferred between the two countries. This exemption aims to facilitate smoother cross-border operations and enhance economic cooperation.

The trade deal comes at a crucial time when global trade is facing challenges due to protectionist measures imposed by certain countries. The UK and India’s commitment to free trade sets a positive example for international trade relations, especially in the face of rising protectionism.

Overall, the UK-India trade deal is seen as a significant step towards strengthening economic ties and unlocking new opportunities for businesses in both countries. The agreement is expected to have a transformative impact on trade relations between the UK and India, opening up new avenues for collaboration and growth.