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Trade agreements

UK and India Sign Landmark Free Trade Agreement, Paving Way for Long-Term Economic Partnership

Strategic Insights

— 1 min read

India's prime minister, Narendra Modi, arrived in London yesterday to sign a landmark free trade agreement with the UK, the most economically significant trade deal since the UK's exit from the EU. The £4.8 billion agreement will see tariffs cut on goods and increase market access for both countries, marking India's first major free trade pact outside Asia. Analysts say the agreement signals a long-term economic partnership between the two nations, with Modi's visit expected to deepen ties and boost trade.

Key Takeaways:

  • The UK and India have signed a landmark free trade agreement, worth £4.8 billion, which is the most economically significant trade deal since the UK's exit from the EU.
  • The agreement will see tariffs cut on goods and increase market access for both countries, with India marking its first major free trade pact outside Asia.
  • India stood firm on key demands during negotiations, winning concessions on work visas, recognition of professional qualifications, and exemptions from national insurance contributions for Indian nationals working temporarily in the UK.
  • The deal must still be ratified by both parliaments, likely delaying implementation until mid-2026.
  • Indian economist Sanjaya Baru said "The UK and India, in many ways we have complementarities. We have had a historical relationship. It's good to have a deeper trade relationship."
  • Modi, accompanied by his commerce minister, Piyush Goyal, can claim India held its ground while the UK compromised, bolstering his message of India's rising global clout.

Statistics:

  • £4.8 billion: The value of the landmark free trade agreement between the UK and India.
  • 17%: The increase in the number of police officers sacked from forces in England and Wales in the past year compared to the previous year.
  • 426: The record number of police officers dismissed or having their contracts terminated in the 12 months to March.
  • £17 million: The deficit of Hillingdon Council, which has had asylum seekers "dumped on their doorstep".
  • £150,000: The amount spent by Reform councillor George Finch to hire political advisers at a county council in Warwickshire.

Sources:

  • Tom Ambrose, "Indian Prime Minister Makes Official UK Visit to Sign Landmark Trade Deal", UK Politics Blog, no date given.
  • Eleni Courea, "Analysis: UK and India's Landmark Free Trade Agreement", The Guardian, no date given.
  • Stefan Rousseau/Reuters, Photograph of Keir Starmer and Narendra Modi at the G20 summit in Brazil in November 2024.

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