Unlocking Opportunities: UK and India Forge Major Trade Deal After Prolonged Negotiations

The UK and India have announced a major trade deal aimed at enhancing economic ties, allowing easier exports for UK businesses and reducing tariffs on Indian clothing and footwear. This landmark agreement, which took three years to finalize, is viewed as a significant milestone by both governments. Prime Minister Sir Keir Starmer hailed it as a boon for the economy, projecting it could increase trade by an additional £25.5 billion annually by 2040, building on the current £42.6 billion trade volume.

Indian Prime Minister Narendra Modi described the deal as ambitious and mutually beneficial, asserting it would stimulate trade, investment, growth, job creation, and innovation on both sides. Once implemented, the agreement will bring lower tariffs on UK exports like gin, whisky, and higher-value cars, while it also slashes Indian tariffs on various goods destined for the UK.

The deal includes provisions for the services sector, allowing British firms better access to contracts, and introduces a three-year exemption from social security payments for workers transferred between the two countries, a provision termed as an unprecedented achievement by Indian officials.

Despite broad support, opposition leaders, such as Kemi Badenoch, have criticized the agreement, citing potential downsides for UK businesses and calling for transparency in the deal’s implications on taxation for Indian workers in the UK. The government responded asserting that NHS funding would not be impacted, as these workers must still pay the immigration health surcharge.

As India’s economy is projected to rise to be the third-largest globally, this deal is strategic for the UK, which seeks to bolster its economic standing post-Brexit. Leaders from various sectors have expressed optimism about the opportunities this partnership presents while navigating a global atmosphere increasingly defined by protectionism.