UK, India Announce 'Landmark' Trade Deal

By Deepak Arora

NEW DELHI, May 6: In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention, informed Prime Minister Narendra Modi.

In a phone conversation with his British counterpart Sir Keir Starmer, Modi said "these landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies."

According to a statement issued here by David Russell, UK Communications Counsellor and Spokesperson, the leaders began by celebrating the landmark UK-India Free Trade Agreement – a deal which will add billions to the UK economy, boost wages and deliver on this government’s Plan for Change.

In a huge economic win for the UK, delivering for working people and British businesses, Prime Minister Sir Keir Starmer underscored the need to go further and faster to get things done, to secure and renew the country.

Through pragmatism and purpose, the leaders noted that this historic deal is the biggest the UK has done since leaving the EU, and the most ambitious India has ever done.

Prime Minister Modi also thanked Sir Keir Starmer for his decisive leadership in getting the deal over the line.

Turning to the terrorist attack in Jammu and Kashmir last month, the Prime Minister reiterated his deep condolences at the tragic and senseless loss of life.

Finally, Modi extended an invitation to India, which the Prime Minister Keir Starmer was pleased to accept and said he looked forward to visiting India at the earliest opportunity.

"They looked forward to speaking soon," added the spokesperson.

The trade deal has happened after three years of on-off negotiations. The trade deal will make it easier for UK firms to export whisky, cars and other products to India, and cut taxes on India's clothing and footwear exports.

The deal does not include any change in immigration policy, including towards Indian students studying in the UK, the British government said.

Business Secretary Jonathan Reynolds said the benefits for UK businesses and consumers were "massive".

Last year trade between the UK and India totalled £41bn and was already forecast to grow, but the government said the deal would boost that trade by an additional £25.5bn a year by 2040.

Reynolds met his Indian counterpart Piyush Goyal in London last week to put the final touches on the deal.

Once it comes into force, which could take up to a year, UK consumers are likely to benefit from the reduction in tariffs on goods coming into the country from India, the Department for Business said.

As well as clothing, that will include some Indian foodstuffs, such as frozen prawns, jewellery and gems.

The government also emphasised the benefit to economic growth and job creation from UK firms expanding exports to India.

Gin and whisky tariffs will be halved to 75%, with further reductions taking effect in later years.

Levies on cars, aerospace, electricals and some UK food products will also fall, including lamb, salmon, chocolates and biscuits.