A Historic Partnership: King Charles and Modi Celebrate Game-Changing India-UK Trade Deal
King Charles III has engaged in a significant conversation with Indian Prime Minister Narendra Modi at Sandringham, coinciding with the signing of a pivotal free trade agreement between the UK and India. This deal, which took three years to finalize, promises a multi-billion-pound export boost, allowing UK cars and whisky to become cheaper for export to India, and making Indian textiles and jewelry more affordable for UK consumers.
The trade agreement addresses multiple sectors with lowered tariffs, including:
Clothing and shoes
Cars
Food products (like frozen prawns)
Jewelry and gems
The UK government anticipates this deal will inject an additional £4.8 billion into the economy annually and create over 2,200 jobs as Indian firms expand within the UK. Business Secretary Jonathan Reynolds dismissed fears that the agreement could endanger British jobs, noting that employment terms for Indian workers will be consistent with arrangements currently in place for other nationalities.
During Modi’s visit, he presented a tree gift to King Charles, symbolizing a shared commitment to environmental initiatives, echoing Modi’s previous campaign encouraging tree planting in honor of mothers. This deal has been touted by the Labour Leader Sir Keir Starmer as the most significant trade agreement the UK has secured since Brexit, enhancing Britain’s business landscape.
Both leaders expressed their intent to deepen collaboration beyond trade in areas like defense, education, climate, technology, and innovation. They agreed on strengthening intelligence sharing and operational cooperation to combat challenges like organized crime and irregular migration. Despite the positive aspects, the UK has not secured as much access to India’s financial and legal services sectors as hoped, and discussions are ongoing regarding a bilateral investment treaty and a tax on high-carbon industries which India fears might disadvantage its import market.
Critics point out that while the deal presents opportunities, there are concerns regarding job security for British workers, with perspectives varying between political parties on the impact of Brexit on such agreements. The Liberal Democrats argue that a better trade relationship with the EU might deliver even more jobs and growth compared to the current deal with India.