UK and India Sign Landmark Trade Deal, Worth £4.8 Billion to the UK GDP

Strategic Insights -

The UK and India have signed a landmark trade deal, worth £4.8 billion to the UK GDP each year. The deal, signed by Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi, is set to create over 2,200 British jobs across the country. The deal will drive jobs in high-growth sectors like aerospace, technology, and advanced manufacturing, and will unlock new opportunities for businesses.

Key Takeaways:

  • The UK-India trade deal is worth £4.8 billion to the UK GDP each year, with £2.2 billion in collective uplift in wages for British workers.
  • The deal will create over 2,200 British jobs across the country, with 26 British companies securing new business in India.
  • The deal will drive jobs in high-growth sectors like aerospace, technology, and advanced manufacturing.
  • British companies selling products to India will find it easier to sell to the Indian market, with India's average tariff on UK products dropping from 15% to 3%.
  • The deal will support the sectors which drive the most growth for the economy, including the clean energy industry, financial and professional business services, and various manufacturing sectors.
  • The deal will increase UK exports to India by nearly 60% in the long run, equivalent to an additional £15.7 billion of UK exports to India in 2040.
  • The deal will increase bilateral trade by nearly 39% in the long run, equivalent to £25.5 billion a year in 2040.

Statistics:

  • £4.8 billion: Value of the trade deal to the UK GDP each year.
  • £2.2 billion: Collective uplift in wages for British workers.
  • 2,200: Number of British jobs created by the trade deal.
  • 26: Number of British companies securing new business in India.
  • £5 billion: Contracts agreed between Airbus and Rolls-Royce with major Indian airlines.
  • £10 million: Investment by Zerowatt Energy in its Global HQ in Leicester.
  • £83 million: Projected UK export contributions of Carbon Clean over the next five years.
  • £74.3 million: Export value of Occuity's cutting-edge ophthalmic screening technologies to India over 5 years.
  • 20,000: Number of jobs created by Johnson Matthey's contracts in India.

Sources:

  • Prime Minister's Office, 10 Downing Street
  • Department for Business and Trade
  • HM Treasury
  • Cabinet Office
  • The Rt Hon Sir Keir Starmer KCB KC MP
  • BBC News
  • The Times of India
  • Reuters