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Many grand adjectives have been used to describe the UK and India’s trade deal and its impact on the respective economies.
The Indian government said it was “the most comprehensive free trade deal” it had ever entered into, with “an unprecedented achievement” for Indian migrant workers, while the UK has described it as a “huge economic win”.
It’s also the most significant trade deal Britain has negotiated since Brexit.
But what’s actually in it?
The text hasn’t been published with the agreement yet to be signed by leaders Sir Keir Starmer and Narendra Modi. It can take up to a year for such an agreement to receive parliamentary approval.
So, we have to take the word of the two governments.
Tax falls on UK and Indian goods
A key component is the reduction of tariffs.
India is a pretty protectionist state, with taxes around 130% on some goods it imports. As a result, it’s the Indians making the steepest tariff reductions.
That means UK-made items are likely to be cheaper on Indian shelves and more competitive as a result.
Money: Interest rate decision delayed… by two minutes
Goods to benefit from tariff falls include whisky and gin, which will see their import tax halved from 150% to 75% and then reduced to 40% by year 10 of the deal, the UK government said.
There’ll be quotas on UK car exports to India and vice versa, but tariffs on those cars and parts will drop from more than 100% to 10%.
Indian consumers can expect to buy cheaper UK-manufactured cosmetics, medical devices, aerospace items, lamb, salmon, electrical machinery, soft drinks, chocolate, and biscuits as these items will be subject…
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