In a major move, Britain has secured a £25.5 billion free trade agreement with India.
This deal promises to reduce the cost of various high street products in the UK, benefiting consumers across the country.
The agreement, which was finalized after extensive negotiations, will see the UK lower tariffs on clothing, footwear, and food products imported from India.
In exchange, India will reduce its tariffs on British goods such as whisky and cars.
Key Details of the Agreement
One of the most notable aspects of this deal is the reciprocal tariff reductions between the two nations.
British exports to India, particularly scotch whisky and automobiles, will benefit from dramatic tariff cuts.
Meanwhile, India’s exports to the UK, including aerospace, electrical goods, and food products, will also become more affordable.
However, despite the positive developments, questions linger about the specifics of visa arrangements for Indian nationals wishing to study or work in the UK.
This issue was a major point of contention in previous negotiations under both the Conservative and Labour governments.
Sir Keir Starmer, the UK’s Prime Minister, acknowledged the “tough negotiations” that took place over visa matters but reassured that the deal includes the “best set of arrangements” to protect crucial British industries.
Reactions to the Deal
Following the announcement, both leaders expressed optimism about the deal’s potential.
Prime Minister Keir Starmer emphasized that the trade agreement would stimulate economic growth and provide tangible benefits for British businesses and consumers.
Indian Prime Minister Narendra Modi also hailed the agreement as “ambitious and mutually beneficial.”
He celebrated the milestone on social media, highlighting that the trade pact would strengthen the countries’ strategic partnership and drive growth, job creation, and innovation.
The deal has also attracted positive responses from various sectors.
Business and Trade Secretary Jonathan Reynolds welcomed the agreement as a step forward for British trade, marking the end of over a dozen rounds of negotiations.
The UK Government had been in talks with India since 2022 to finalize a pact, with India on track to become the world’s third-largest economy.
Mixed Reactions from Opposition and Industry Groups
While many have praised the deal, some have raised concerns.
Conservative shadow trade secretary Andrew Griffith acknowledged the deal’s benefits for international trade but pointed out that the government should apply similar principles to the UK’s domestic economy.
He criticized the government’s stance on raising taxes and energy costs.
On the other hand, the Confederation of British Industry (CBI) expressed strong support for the deal, calling it a “beacon of hope” in the face of rising protectionism.
Rain Newton-Smith, the CBI’s chief executive, emphasized that India is one of the UK’s most important trading partners.
She commended the government for securing a deal that not only safeguards national interests but also opens up new opportunities for UK businesses in India’s growing market.
Looking Ahead: What’s Next?
As the deal progresses, attention will turn to its implementation and the long-term impact on both nations.
For now, the focus will be on the next steps, including Prime Minister Starmer’s planned visit to India.
The trade deal represents a significant step in the UK’s post-Brexit trade strategy and sets the stage for future economic collaboration between the two countries.