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UK and India agree 'landmark' trade deal | |
(31 minutes later) | |
UK Secretary of State for Business and Trade Jonathan Reynolds and India's Minister of commerce and industry Piyush Goyal met in London last week to finalise the deal | |
After three years of on-off negotiations, the UK and India have agreed a trade deal that will make it easier for UK firms to export whisky, cars and other products to India, and cut taxes on India's clothing and footwear exports. | |
The deal does not include any change in immigration policy, including towards Indian students studying in the UK, the British government said. | The deal does not include any change in immigration policy, including towards Indian students studying in the UK, the British government said. |
Business Secretary Jonathan Reynolds said the benefits for UK businesses and consumers were "massive". | Business Secretary Jonathan Reynolds said the benefits for UK businesses and consumers were "massive". |
Last year trade between the UK and India totalled £41bn and was already forecast to grow, but the government said the deal would boost that trade by an additional £25.5bn a year by 2040. | Last year trade between the UK and India totalled £41bn and was already forecast to grow, but the government said the deal would boost that trade by an additional £25.5bn a year by 2040. |
Mr Reynolds met his Indian counterpart Piyush Goyal in London last week to put the final touches on the deal. | Mr Reynolds met his Indian counterpart Piyush Goyal in London last week to put the final touches on the deal. |
Once it comes into force, which could take up to a year, UK consumers are likely to benefit from the reduction in tariffs on goods coming into the country from India, the Department for Business said. | |
As well as clothing, that will include some Indian foodstuffs, such as frozen prawns. | |
The government also emphasised the benefit to economic growth and job creation from UK firms expanding exports to India. | The government also emphasised the benefit to economic growth and job creation from UK firms expanding exports to India. |
Gin and whisky tariffs will be halved to 75%, with further reductions taking effect in later years. | |
Levies on cars, aerospace, electricals and some UK food products will also fall. | |
The British government said the deal was the "biggest and most economically significant" bilateral trade agreement the UK had signed since leaving the European Union in 2020. | |
Prime Minister Sir Keir Starmer described it as a "landmark deal" which would boost growth and "deliver for British people and business". | |
India's prime minister, Narendra Modi, described the deal as an historic milestone that was "ambitious and mutually beneficial". | |
India is forecast to become the world's third-largest economy in a few years. | India is forecast to become the world's third-largest economy in a few years. |
US President Donald Trump's tariff campaign has focused minds in other countries on how to respond, and increased the impetus to strike trade deals. | US President Donald Trump's tariff campaign has focused minds in other countries on how to respond, and increased the impetus to strike trade deals. |
The UK is also a high priority trading partner for Prime Minister Modi's government, which has an ambitious target to grow exports by $1 trillion by 2030. | |
Allie Renison, a former government trade adviser said: "This is arguably the most economically transformational free-trade deal in the UK's post-Brexit landscape of agreements lined up, particularly because of India's size, growth rate and relatively high barriers to accessing its market. | |
"While negotiations have been rumbling on for several years with a number of stumbling blocks, it seems this government was keen to resolve them to get the deal over the line," she said. |