UK and India Sign Major Trade Deal, Boosting Economy and Creating Jobs

Strategic Insights -

The UK and India have signed a landmark trade deal, marking a major win for Britain amidst global trade tensions. The agreement will slash tariffs on trade between the two nations, making it easier for UK firms to export to India and potentially offering cheaper prices to shoppers. The deal is expected to add around £4.8 billion to the UK economy each year and create thousands of British jobs.

Key Takeaways:

  • The trade deal will reduce India's average tariff on UK products from 15% to 3%, making it cheaper for British companies to sell goods to the Indian market.
  • Whisky producers will see tariffs slashed in half from 150% to 75%, and duties are expected to fall further to 40% over the next ten years.
  • Tariffs on British cars will fall from 110% to 10% under a quota system, and other industries including soft drinks and cosmetics are also expected to see cheaper duties.
  • The deal is expected to boost trade between the two nations by an additional £25.5 billion a year by 2040 and drive up British exports by another £15.7 billion.
  • The agreement is expected to create another 2,200 jobs across the country and attract £6 billion investment by British and Indian businesses.
  • Some Indian and British workers will also gain from a three-year exemption from social security payments, to stop them from being forced to pay twice if they are temporarily transferred abroad.

Statistics:

  • The deal is expected to add around £4.8 billion to the UK economy each year.
  • The agreement is expected to boost trade between the UK and India by an additional £25.5 billion a year by 2040.
  • British exports are expected to drive up by another £15.7 billion.
  • The deal is expected to create another 2,200 jobs across the country.
  • The UK has trade of goods and services worth around £42.6 billion with India last year.

Sources:

  • Prime Minister Keir Starmer
  • Indian Prime Minister Narendra Modi
  • Government of the United Kingdom
  • William Bain, Head of Trade Policy at the British Chambers of Commerce.