The Department for Business and Trade has announced a trade deal with India that it says could add £4.8 billion a year to the economy.
The Government has announced a UK-India Free Trade Agreement (FTA), which is says will add billions to the UK economy, boost wages and deliver on the Government’s Plan for Change.
India is the fastest growing economy in the G20, and the deal marks the biggest trade deal that the UK has done since leaving the EU.
In a statement, the Department for Business and Trade (DBT) has said that it is estimated the deal will “increase bilateral trade by £25.5 billion, add £4.8 billion a year to the economy, and boost wages by £2.2 billion every year in the long run”.
Cheaper access to trade
Government claims that the deal represents a “huge opportunity” for UK businesses, giving them “first-mover advantage” with India, which is currently the biggest country in the world by population and the fifth-largest global economy, and projected to become third largest in the next three years.
The deal will make it cheaper, quicker, and easier for businesses to trade with India, and will “slash” costs on UK exports, including those of whiskies and gin, medical devices, cosmetics, and British Lamb.
Responding to the announcement, the Association of British Meat Suppliers (AIMS) head of communications Tony Goodger commented: “This is excellent news for AIMS’s lamb processing members. Be it our premium brands such as Welsh PGI Lamb and Scotch PGI Lamb for the rapidly growing middle class or our high-quality assured Halal lamb for India’s 200 million Muslim consumers, the UK has a great opportunity in this market.”
Government commitment
The DBT statement concluded: “Throughout the negotiations, we have championed our values – securing India’s first ever chapters on anti-corruption, consumer protections, labour rights, the environment, gender equality, and development. We have protected the NHS, defended the UK’s interests, ensured the points-based immigration system is not affected, upheld our high food standards, and maintained our animal welfare commitments throughout.
“This deal demonstrates our commitment to both workers and businesses, staying true to our values while driving economic growth.”
Reacting to the news, Karen Betts, chief executive of The Food and Drink Federation, said: “We’re delighted the Government has finalised its new Free Trade Agreement with India, which is testament to the hard work of the negotiating team.”
“This is very welcome news for UK food and drink manufacturers.”
Betts continued: “This is very welcome news for UK food and drink manufacturers, particularly for soft drinks, chocolates, biscuits, crispbreads and crackers, which will now all benefit from tariff-free access to one of the fastest growing markets in the world.
“The UK exported nearly £300 million worth of food and drink to India in 2024, so this FTA represents a significant opportunity for British food and soft drinks.”
