The UK and India, which is forecast to become the third largest global economy within three years, have agreed a trade deal which will see reductions on 90% of tariff lines locked in, with 85% of these becoming fully tariff-free within a decade.
According to the Department for Business and Trade (DBT), whisky and gin tariffs will be cut from 150% to 75% before reducing to 40% by year 10 of the deal, while automotive tariffs will go from over 100% to 10% under a quota. Other goods set to see reduced tariffs include cosmetics, aerospace, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate and biscuits.
The deal is expected to increase bilateral trade by £25.5 billion, UK GDP by £4.8 billion and wages by £2.2 billion each year in the long run.
Trade Secretary Jonathan Reynolds said: “Negotiators across both sides have worked around the clock since February to get this deal done, which is the biggest and most economically significant bilateral trade deal the UK has done since leaving the EU, and the best deal India has ever agreed.”
Both Governments have been congratulated by the British Chambers of Commerce (BCC) with its Head of Trade Policy, William Bain, agreeing that it will give UK companies exporting to India a clear edge on increasing sales.
The Chairman of the UK India Business Council (UKIBC), Richard Heald, said: “We understand that signing of the agreement is starting point and it will need a Parliamentary sign-off to enter into force, allowing businesses to take advantage of the new trade rules and opportunities.”
