The UK and India have officially entered a game-changing trade agreement, concluding three years of negotiations aimed at enhancing bilateral commerce. UK firms will benefit from easier access to the Indian market for products such as whisky and cars, while India stands to gain from reduced taxes on its clothing and footwear exports. This "historic" agreement, celebrated by both Prime Minister Sir Keir Starmer of the UK and Indian Prime Minister Narendra Modi, is anticipated to elevate annual trade growth by £25.5 billion by 2040, building on the existing £42.6 billion trade from the previous year.
UK and India Forge Landmark Trade Agreement, Boosting Economic Ties
UK and India Forge Landmark Trade Agreement, Boosting Economic Ties
The deal marks a significant shift in trade dynamics between the two nations, facilitating exports and reducing tariffs.
Notably, the deal does not alter immigration policies, particularly regarding Indian students in the UK. Tariffs on key UK exports, including gin, whisky, and higher-value cars, are set to be significantly reduced, promoting more robust trade opportunities. Additionally, the agreement includes provisions for the services sector and offers a three-year exemption from social security payments for certain workers, a move which some opposition parties have criticized.
The deal emphasizes the importance of the Indian market as a crucial partner for the UK, positioning both nations to capitalize on economic growth, investment, and job creation while reflecting a broader commitment to free trade amidst global tensions.
The deal emphasizes the importance of the Indian market as a crucial partner for the UK, positioning both nations to capitalize on economic growth, investment, and job creation while reflecting a broader commitment to free trade amidst global tensions.
