Great Britain and India agree to a trade agreement after three years of discussions

Great Britain and India have agreed a trade agreement that facilitates British companies to export whiskey, cars and other products to India and to reduce taxes on exports and shoes in India.

The British government said that the “landmark” association, which lasted three years, did not include a change in immigration policy, including from Indian students who studied in Great Britain.

Prime Minister Sir Keir Starrer said that the deal would strengthen the economy and “deliver for the British and companies”.

Last year the trade between Great Britain and India was 42.6 billion GBP and has already been forecast that the government would increase this trade by a further GBP of 25.5.5 billion per year by 2040.

The Indian Prime Minister Narendra Modi described the agreement as a historical milestone that was “ambitious and advantageous for both sides”.

The pact would help to catalyze “trade, investments, growth, growth, creation of jobs and innovations in both economies,” he said in a contribution on the social media platform X.

As soon as it comes into force, which could take up to a year, the British consumers probably benefit from the reduction of tariffs for goods that come from India into the country, said the department for economy and trade.

This includes lower tariffs:

• Clothing and shoes
• Cars
• Food including frozen shrimp
• Jewelry and gemstones

The government also emphasized the benefits of economic growth and the creation of jobs from British companies that extend exports to India.

The British exports in which taxes fall include:

• Gin and whiskey
• Aerospace, electricity and medical devices
• cosmetics
• Lamb, salmon, chocolates and cookies
• Cars higher value

The British government said that the deal was the “largest and most economically significant” bilateral trade agreement that the United Kingdom had signed since the European Union left in 2020.

The British Minister of Economic Affairs Jonathan Reynolds said that the advantages for British companies and consumers were “massive”.

The tariffs on gin and whiskey, an important point in the negotiations, are halved for 75%, with further reductions come into force in later years.

Customs of 100% for more expensive cars exported in Great Britain that are exported to India will fall to 10%, which is subject to a quota that is limited to the total number.

The business also includes provisions on the service sector and the procurement that enable British companies to compete further contracts.

According to the conditions of the deal, some Indian and British employees will also gain from a three -year liberation from social security payments, which the Indian government described as “unprecedented performance”.

The exemption applies to employees of Indian companies that have been temporarily transferred to Great Britain and the employees of the British companies who were transferred to India. Social security contributions are only paid in both locations by employers and employees in their home country.

The United Kingdom has already had similar mutual “Double Convents Convention” agreements with 17 other countries, including the EU, the USA and South Korea, said the government.

However, Guide of the opposition Kemi Badenoch described the agreement as “two -stage taxes of two -stage Keir”With the increase in the employer Ni contributions from the budget last month.

Andrew Griffith, secretary of the shadow trade, said: “Every time Labor negotiates, Great Britain loses.”

The deputy chairman of the Liberal Democrat, Daisy Cooper, said that it was “very worrying that Indian employees come here. Companies may not have to pay taxes on these employees” and demanded the deputies to coordinate the business.

The government said that the liberation of the national insurance would not affect NHS financing, since Indians working in Great Britain would still have to be necessary in order to pay the contract for immigration health.

India, currently the fifth largest economy in the world, will probably become the third largest in a few years in a few years, which is a desirable trading partner for the UK that is currently the sixth largest economy in the world.

Great Britain is also a trading partner with a high priority for the government of Prime Minister Modi, which has an ambitious goal of increasing exports by $ 1 trillion by 2030.

The deal is a profit for free trade at a time when the comprehensive tariff campaign of US President Donald Trump brought the idea on the defensive and sparked fears against tit-for-tat trading wars.

It seems to have increased the impetus to correct this trade agreement.

Rain Newton-Smith, Managing Director of the Business Lobby Group, the CBI, welcomed the business, in which according to Trump’s tariff waves, it was a “lighting fire in the middle of the mockery of protectionism”.

In the British companies, they saw “countless” opportunities on the Indian market, added.

Allie Renison from the communications company Sec Newgate and a former government trade advisor said that the deal may be “transforming” due to the size, the growth rate of India and the relatively high existing obstacles for access to its market.