Unlocking Prosperity: The UK-India Trade Deal and Royal Diplomacy

King Charles recently met with Indian Prime Minister Narendra Modi at Sandringham following the signing of a significant free trade deal between the UK and India. This multi-billion-pound agreement will reduce export costs for UK cars and whisky to India while making Indian textiles and jewellery more affordable in the UK. The deal, which took three years to finalize, also aims to address issues like illegal migration.

During the visit, Modi presented King Charles with a tree gift, symbolizing a commitment to environmental initiatives. British Prime Minister Sir Keir Starmer hailed the trade agreement as the most economically critical one since Brexit, promising to create over 2,200 British jobs as Indian businesses expand their operations in the UK.

Modi described the agreement as a blueprint for shared prosperity, enhancing market access for Indian goods in the UK, including textiles and engineering products, while UK businesses will benefit from easier access to Indian markets. The UK expects the deal to boost its economy by about £4.8 billion a year. Key benefits include lower tariffs for various goods, with UK exports to India seeing average tariffs decrease dramatically from 15% to 3% and whisky tariffs slashed from 150% to 75%.

The deal also encompasses broader collaboration in areas such as defence, education, climate, and technology. However, there are ongoing discussions about the limits of access to India’s financial and legal service sectors and potential impacts of the UK’s high-carbon industry tax.

Opponents express concerns regarding the impact on UK jobs, although Business Secretary Jonathan Reynolds assures that the trade deal will not lead to undercutting British workers. This trade agreement is viewed by some as a victory born from Brexit, while others argue that the UK could have achieved greater gains by forging a new UK-EU customs union. Overall, this landmark trade agreement signifies a mutual effort to strengthen the historic ties between the two nations.