The UK-India trade deal has been officially signed, marking a new chapter in economic relations between the two nations. British Prime Minister Sir Keir Starmer and Indian Prime Minister Narendra Modi sealed the agreement at Chequers. Later, King Charles hosted Modi at his Sandringham estate in Norfolk, symbolizing the growing partnership.
This deal has been three years in the making and is projected to add £4.8 billion to the UK economy annually. It reduces tariffs on a wide range of goods including whisky, cars, seafood, clothing, and medical devices. In return, Indian exports like textiles, jewellery, and footwear will enjoy easier access to UK markets.
Sir Keir Starmer called it “the biggest and most economically significant trade agreement since Brexit.” He emphasized the message that Britain is open for business and ready for global growth. He confirmed the UK-India trade deal will create over 2,200 new jobs in the UK through business expansion and fresh trade opportunities.
Modi described the agreement as a “blueprint for shared prosperity.” He noted that Indian industries will benefit from more affordable UK goods such as aerospace components and medical equipment. British whisky producers gain immediate access to the Indian market, with tariffs slashed from 150% to 75%, and further cuts planned by 2035.
Although the deal awaits UK parliamentary approval and may take a year to enforce, it already promises significant economic benefits. Average tariffs on UK exports to India will fall from 15% to just 3%.
The agreement also includes extended social security exemptions. Workers temporarily transferred between the two countries will pay contributions only in their home country. Critics feared this could undercut UK workers. However, Business Secretary Jonathan Reynolds assured this matches deals already in place with 17 other nations.
Opposition voices remain divided. Conservatives praised the deal as a Brexit success. Liberal Democrats argued that stronger gains could come from renewed EU relations. Shadow Business Secretary Andrew Griffith warned Labour policies could harm the deal’s benefits.
Despite some gaps, such as limited access to India’s financial services, talks continue on a future investment treaty. Meanwhile, both sides agreed to expand cooperation in defence, education, innovation, and climate change.
A notable moment at Sandringham was Modi gifting King Charles a tree, aligning with his green initiative launched last year. This symbolizes growing ties beyond economics.
In conclusion, the UK-India trade deal marks a turning point in international trade and strategic collaboration, promising real benefits for both nations.
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