Business Secretary Jonathan Reynolds has said an impending trade agreement between the UK and India marks a ‘historic day’ for Britain.
The deal is expected to trigger around £6 billion of investment for the British economy and create over 2,000 jobs. And there’s great news for UK exporters too, with tariffs on a range of goods set to be slashed from 15% to 3% on average for the £11 billion of goods already shipping into the fastest-growing major economy on the planet.
This includes whiskey tariffs being cut in half in the immediate term, and set to fall further over the next five years. Soft drinks, autos and cosmetics will also see rates fall.
In return, the UK is set to import more of India’s textiles, gemstones and other goods.
By 2040, the impact of the deal is expected to deliver a £25.5 billion boost per year.
Kier Starmer and Narendra Modi could sign the deal today as part of a wide-scale meeting, which will likely also discuss illegal migration and the sharing of intelligence.
Starmer has already commented that the deal ‘is a major win for Britain’, further cementing business ties with a key partner with bilateral trade already worth £42.6 billion a year.
He said: “It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.
“We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.”
Chief executive of the CBI, Rain Newton-Smith, told LBC that: “A trade agreement with India – one of the world’s fastest-growing economies – is a springboard for long-term partnership and prosperity. UK firms can take advantage of this new platform to scale, diversify and compete on the global stage.”
Opportunities for UK firms
This is another in a string of new trade agreements signed by the UK government over the last year and creates an opportunity for ambitious businesses to increase sales into huge new markets.
Read more: UK secures two huge trade agreements in a week: What it means for British businesses
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