{"id":80646,"date":"2025-05-07T01:55:11","date_gmt":"2025-05-07T01:55:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/80646\/"},"modified":"2025-05-07T01:55:11","modified_gmt":"2025-05-07T01:55:11","slug":"uk-and-india-strike-landmark-post-brexit-trade-deal-slashing-tariffs-on-whisky-cars-and-cosmetics","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/80646\/","title":{"rendered":"UK and India strike landmark post-Brexit trade deal slashing tariffs on whisky, cars and cosmetics"},"content":{"rendered":"

In a historic shift that has taken three years to craft, the United Kingdom and India have signed a sweeping trade deal that will slash tariffs<\/a>, open up markets, and inject billions into both economies\u2014without altering immigration rules.<\/p>\n

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A very productive meeting with Prime Minister @NarendraModi<\/a>.<\/p>\n

Yesterday we announced plans to relaunch UK-India trade talks.<\/p>\n

A new trade deal will support jobs and prosperity in the UK \u2013 and represent a step forward in our mission to deliver growth and opportunity across the\u2026 pic.twitter.com\/8RHUshApdu<\/a><\/p>\n

\u2014 Keir Starmer (@Keir_Starmer) November 19, 2024<\/a><\/p><\/blockquote>\n

Billed as the UK\u2019s most significant post-Brexit trade agreement, the deal will unlock a projected \u00a325.5 billion (A$49.2 billion) in additional annual trade by 2040, while boosting British GDP by \u00a34.8 billion (A$9.3 billion) and raising wages by \u00a32.2 billion (A$4.2 billion) annually.<\/p>\n

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The trade deal with India will raise living standards, put more money in the pockets of British working people, and deepen the unique ties between our two nations. pic.twitter.com\/TAXsPPN9Pv<\/a><\/p>\n

\u2014 Keir Starmer (@Keir_Starmer) May 6, 2025<\/a><\/p><\/blockquote>\n

Prime Minister Sir Keir Starmer called it \u201ca historic day for the United Kingdom and for India\u201d, promising the agreement would \u201craise living standards, put more money in the pockets of British working people, and deepen the unique ties between our two nations\u201d.<\/p>\n

– Advertisement –<\/p>\n

On the Indian side, Prime Minister Narendra Modi praised the deal as \u201cambitious and mutually beneficial,\u201d posting on X that it would \u201ccatalyse trade, investment, growth, job creation, and innovation in both our economies\u201d.<\/p>\n

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Delighted to speak with my friend PM @Keir_Starmer<\/a>. 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. These landmark agreements will further deepen our\u2026<\/p>\n

\u2014 Narendra Modi (@narendramodi) May 6, 2025<\/a><\/p><\/blockquote>\n

Under the new term<\/a>s, British exports such as whisky, gin, aerospace components, and medical devices will see steep tariff reductions. One of the thorniest issues in earlier negotiations\u2014India\u2019s 150% tariff on whisky\u2014has now been halved to 75%, with further cuts expected over time. High-end UK-made cars, which previously faced tariffs of 100%, will now be taxed at 10%, though a quota will apply.<\/p>\n

British consumers are also set to benefit. Tariffs will fall on Indian exports including clothing, footwear, jewellery, gems, and foodstuffs like frozen prawns. \u201cThis is a win-win,\u201d said UK Business Secretary Jonathan Reynolds. \u201cThe benefits for UK businesses and consumers are massive.\u201d<\/p>\n

Indian service providers stand to gain too, with a three-year exemption from social security contributions for staff temporarily relocated to the UK\u2014a provision India\u2019s government lauded as \u201can unprecedented achievement\u201d.<\/p>\n

While some critics voiced concern about this exemption potentially disadvantaging British workers, Trade Minister Douglas Alexander clarified that the arrangement only applies to temporary secondments and does not affect NHS funding, as Indian workers will continue to pay the immigration health surcharge.<\/p>\n

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This forward-looking agreement benefits our farmers, fishermen, MSMEs, startups, exporters and aligns with India’s vision of Viksit Bharat 2047.<\/p>\n

It also supports the shared growth ambitions of both our nations. \ud83c\uddee\ud83c\uddf3\ud83e\udd1d\ud83c\uddec\ud83c\udde7 https:\/\/t.co\/5UGNqKkeJq<\/a><\/p>\n

\u2014 Piyush Goyal (@PiyushGoyal) May 6, 2025<\/a><\/p><\/blockquote>\n

Across the business landscape, reactions have been upbeat. Bill Leach of luxury knitwear brand John Smedley welcomed the agreement, saying it would give Indian consumers \u201cgreater access to the world\u2019s finest knitwear\u201d. <\/p>\n

– Advertisement –<\/p>\n

Premier League Chief Executive Richard Masters also applauded the move<\/a>, noting India\u2019s vital role in the league\u2019s international growth. <\/p>\n

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\u201cThe continued expansion of UK businesses in India will have a positive impact on our domestic economy.\u201d<\/p>\n<\/blockquote>\n

Saif Malik of Standard Chartered called the deal \u201ca significant achievement\u201d, noting <\/a>that it would enable \u201cgreater access to one of the world\u2019s largest and most dynamic markets\u201d.<\/p>\n

Rain Newton-Smith, head of the Confederation of British Industry, said<\/a> the deal was \u201ca beacon of hope amidst the spectre of protectionism,\u201d praising its role in defying global trade tensions and reigniting faith in free trade.<\/p>\n

Despite the criticism, momentum behind the agreement appears strong. With India poised to become the world\u2019s third-largest economy within years\u2014and the UK seeking to solidify its post-EU trading identity\u2014the pact signals not only economic cooperation, but strategic alignment.<\/p>\n

\u201cThis agreement is about more than just tariffs,\u201d said former government trade adviser Allie Renison. <\/p>\n

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\u201cGiven India\u2019s size and growth rate, it has the potential to be truly transformational.\u201d<\/p>\n<\/blockquote>\n

Securing the deal with India ahead of the United States has been hailed as a diplomatic win for Downing Street, underscoring the UK\u2019s renewed global trade ambitions post-Brexit.<\/p>\n

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