UK signs its biggest trade deal since Brexit
Prime Minister Keir Starmer officially signed a £4.8-billion trade deal with Indian Prime Minister Narendra Modi on Thursday, 24 July, which he said will unlock £6 billion in investment and export wins for the UK.
Previously hailed by the government as “the biggest and most economically significant bilateral trade deal the UK has done since leaving the EU, and the best deal India has ever agreed”, the agreement will see British buyers enjoy cheaper prices and more choice on clothes, shoes, and food products from India.
The deal encompasses more liberal tariffs across UK aerospace, vehicles, and electrical machinery goods, as well as cuts to tariffs on a range of products imported into the UK from India.
India’s average tariff on UK products will drop from 15% to 3%, which means British companies selling products to India will find it easier to sell to the Indian market.
UK whisky producers are particularly poised to benefit from the new trade deal, with tariffs on UK whisky slashed immediately in half from 150% to 75% and set to fall even further to 40% over the next ten years.
The UK already imports £11 billion in goods from India, but the government hopes that reduced tariffs on Indian goods will translate to potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods.
By reducing tariffs and regulatory barriers to trade, the deal is predicted to increase UK exports to India by nearly 60% and boost bilateral trade by nearly 39% in the long term.
Additionally, 26 British companies have secured new business in India. These include Airbus & Rolls-Royce, with Airbus set to deliver aircraft powered by Rolls-Royce engines to major Indian airlines.
“Through this government’s stable and pragmatic leadership, the UK has become an attractive place to do business,” Starmer said.
“Today we have agreed a landmark deal with India – one of the fastest growing economies in the world, which will grow the economy and deliver for British people and business.”
