The UK and India have like totally agreed on a trade deal that’s gonna make it way easier for UK companies to sell stuff like whisky, cars, and other cool products to India. Plus, they’re gonna cut taxes on India’s clothing and footwear when they export them. The British government was all like, “This is a big deal, it took us three years to make it happen, but we did it!” They also made it clear that there ain’t gonna be any changes to immigration policies, especially for Indian students studying in the UK.
Prime Minister Sir Keir Starmer was all hyped about the deal, saying it’s gonna help the economy and be a win for British people and businesses. Last year, trade between the UK and India was worth £42.6bn, and it was expected to grow even more. But now, with this new deal, they’re saying it could boost trade by an extra £25.5bn a year by 2040. That’s a lot of money, man!
India’s prime minister, Narendra Modi, called the agreement a historic milestone that’s gonna be super awesome for both countries. He even said it would help with trade, investment, growth, job creation, and innovation. Sounds pretty sweet, right?
Once the deal is all official and stuff, which could take up to a year, people in the UK are gonna see some benefits like lower tariffs on goods coming in from India. That means cheaper clothes, food, jewelry, and all that good stuff. Oh, and don’t forget about frozen prawns – those tariffs are gonna drop too!
The government is all about that economic growth and job creation from UK companies selling more stuff to India. They’re saying exports of gin, whisky, aerospace, electricals, medical devices, cosmetics, and food products like lamb, salmon, chocolates, and biscuits are all gonna get a boost. Tariffs on gin and whisky are gonna be cut in half to 75%, and they might even go down more in the future. That’s a win for all the gin and whisky lovers out there!
The deal also covers services and procurement, giving British companies more chances to get contracts. UK Business Secretary Jonathan Reynolds was pumped about the benefits for businesses and consumers, calling them “massive”. He even met with his Indian counterpart to seal the deal.
The British government is saying this is the biggest trade agreement they’ve signed since leaving the EU in 2020. Some Indian and British workers are gonna get a break from paying National Insurance for three years, which is pretty cool. It means they only have to pay social security in their home country, not both places.
But not everyone is totally on board with the deal. Some politicians are saying it’s not fair that Indian workers coming to the UK might not have to pay taxes. Others are worried about the impact on British workers too. It’s a bit of a mixed bag, but hey, that’s politics for ya!
With the US and other countries throwing around tariffs like it’s nobody’s business, the UK and India are smart to team up and make this deal happen. India’s aiming to become the world’s third-largest economy soon, so it makes sense for them to make nice with the UK. And with all the uncertainty in the world, a deal like this is definitely a bright spot.
Businesses in the UK are already seeing tons of opportunities in the Indian market, so this deal is gonna open up even more doors for them. Allie Renison, a former government trade adviser, thinks this deal could be a game-changer because of India’s size, growth rate, and the barriers that UK companies face there. It’s gonna be interesting to see how things shake out once the deal is in full swing.
