UK and India Reach Landmark Trade Deal
In a historic agreement, the UK and India have finalized a trade deal that will have a significant impact on both economies. The deal, which took three years to negotiate, focuses on easing export processes for UK firms while also reducing taxes on Indian exports of clothing and footwear.
Despite the extensive discussions, the agreement does not include any changes to immigration policies, particularly towards Indian students studying in the UK.
Prime Minister Sir Keir Starmer hailed the deal as a boost to the economy that will benefit both British people and businesses.
With trade between the UK and India reaching £42.6bn last year and projected to grow, the new deal is expected to increase trade by an additional £25.5bn annually by 2040.
Indian Prime Minister Narendra Modi described the agreement as ambitious and mutually beneficial, emphasizing its potential to drive trade, investment, job creation, and innovation in both countries.
Once implemented, UK consumers are likely to see reduced tariffs on goods imported from India, providing a boost to the economy and job market.
The UK government underlined the significance of this deal, labeling it as the largest bilateral trade agreement signed since the UK’s departure from the EU in 2020.
Key aspects of the deal include significant reductions in tariffs on gin, whisky, and UK-made cars exported to India, along with provisions for the services sector and procurement to enhance business opportunities for British firms.
Furthermore, the agreement offers a three-year exemption from social security payments for certain Indian and British workers, a move hailed as unprecedented by the Indian government.
With India poised to become the third-largest economy globally in the coming years, the country presents a valuable trading partner for the UK, which is currently the sixth-largest economy worldwide.
The trade deal signifies a win for free trade, especially amidst global concerns over protectionism and escalating trade tensions.
Overall, the agreement is seen as a transformative step towards strengthening economic ties between the UK and India, unlocking new opportunities for businesses and fostering growth in both nations. — BBC
