'Historic' trade deal delivers more than £300m boost to region
The UK has signed an historic trade deal with India as part of the Government's 'Plan for Change'
Sir Keir Starmer says it's an "historic day" as the UK and India formally sign a lucrative new trade deal.
The Prime Minister is welcoming Narendra Modi to Chequers to formally approve the agreement, which is expected to bring in £6 billion to the economy - with the whisky industry of one of the big winners.
Workers are also promised to enjoy an uplift in pay as UK wages grow by £2.2 billion each year, and could also see cheaper prices and more choice on clothes, shoes, and food products.
In our parts of the world, the Government say:
- The South West is to see a £150 million boost, as it's claimed almost 700 businesses exported £579 million in goods to India could grow even more
- The West Midlands is to see a £190 million boost, as it's claimed almost 1,000 West Midlands businesses exported goods worth £592 million to India last year, which could grow even more under the new deal
The South West
Specialist manufacturing companies based in the South West, such as those in the aerospace or precision engineering sectors, will also significantly benefit from reduced tariffs and improved processes that will enable them to more easily sell into India’s market.
It comes as the Government say India is also a major manufacturing hub, and liberalised tariffs under this agreement could mean potential savings as they source the intermediate parts or components required within their own supply chains.
Business and Trade Secretary Jonathan Reynolds said: “The millions brought to the South West each year from the deal we’ve signed with India will be keenly felt across local communities, whether that’s higher wages for workers, more choice for shoppers, or increased overseas sales for businesses.
“This government is proving time and again that we can deliver on our mission to grow the economy, put more money in pockets and boost living standards under our Plan for Change.”
Helen Godwin, Mayor of the West of England, said: “The government’s historic hattrick of trade deals are great news for the West – with a £150 million boost anticipated for our wider region thanks to the new deal strengthening our ties with India.
“Firms here in the West Country have told me that these landmark agreements give them real confidence for future sales, with welcome protections also announced for our creative sector.
“Businesses in the wider region already export almost £600 million of goods to India. That figure is surely set to grow, thanks to average tariffs dropping by more than three-quarters and smoother processes for British products sought by companies and consumers in India.”
The deal will support the sectors which drive the most growth for the economy, including cosmetics manufacturing and green technologies.
The South West’s huge creative industry, which employs around 175,000 people, is set to benefit from copyrighted works being protected for at least 60 years.
India also has an increasing demand for healthy, high-quality products, and immediate tariff cuts for unprocessed shellfish from 33% to zero will open major opportunities for South West exporters of scallops and crabs.
Nick Spencer, Export and Travel Retail Manager at Southwestern Distillery Ltd, said: “There are tremendous hurdles for UK spirits producers in terms of entering and succeeding in the Indian market. The extremely high import tariffs are probably the most significant barrier to entry we have experienced anywhere internationally.
“The FTA is a fabulous step forward. Since its announcement, we have already received significant new interest from Indian importers and the prospect of success in the Indian market now looks much brighter.”
The West Midlands
The Government say businesses and workers in the West Midlands are to benefit 'more than any other region in the UK'.
The region’s strong automotive sector for instance could see a boost thanks to tariffs on major manufacturers like Jaguar Land Rover and Aston Martin being reduced from up to 110% to 10% under a quota.
Business and Trade Secretary Jonathan Reynolds said: “The millions brought to the West Midlands each year from the deal we’ve signed with India will be keenly felt across local communities, whether that’s higher wages for workers, more choice for shoppers, or increased overseas sales for businesses.
“This government is proving time and again that we can deliver on our mission to grow the economy, put more money in pockets and boost living standards under our Plan for Change.”
Richard Parker, Mayor of the West Midlands, said: “The West Midlands has long been a gateway for trade, and our region’s deep-rooted ties with India - in business, culture and community - mean this deal will deliver real benefits on the ground.
“With nearly a thousand local firms already exporting to India, this agreement gives us a platform to grow even further - creating jobs, boosting wages and opening up new opportunities for the future.”
Aligned with the UK’s recent Industrial and Trade Strategies, the deal will support the sectors which drive the most growth for the economy such as automotives in the West Midlands.
The deal will also offer significant opportunities for business and financial services in the region.
JCB Chief Executive Graeme Macdonald said: “India is a great country in which to do business. JCB has been manufacturing machines there since 1979. So, we know India very well and the opportunity for British businesses in that huge market is significant.
“It’s the fifth largest economy in the world and is tipped to become the third largest by 2028. This Free Trade Agreement should give British businesses the confidence they need to enter the market, trade more easily and benefit from the massive opportunity.”
Made possible 'because of Brexit'
Negotiations on the deal began when Boris Johnson was prime minister in 2022, and were concluded in May this year.
Shadow business secretary Andrew Griffith said it had only been made possible "because of Brexit delivered by the Conservatives".
The Confederation of British Industry (CBI) has said that the signing "sends a powerful signal that the UK is open for business and remains resolute in its commitment to free and fair trade".
Chief executive Rain Newton-Smith added: "A trade agreement with India - one of the world's fastest-growing economies - is a springboard for long-term partnership and prosperity. UK firms can take advantage of this new platform to scale, diversify and compete on the global stage."