The UK and India agreed on 4 May 2021 to an Enhanced Trade Partnership that could “double trade” by 2030.
Announcing the move, the UK Government said the deal could “pave the way” for a future UK-India Free Trade Agreement.
According to reports, the deal will create approximately 6,500 new jobs in the UK, as well as attract £533 million of new inwards investment in sectors such as the health, technology, and low carbon industries.
This includes a £240 million investment by the Serum Institute of India in the UK into their vaccine business – which is expected to generate $1 billion (£720 million) a year.
The partnership will also create new export opportunities for British businesses, with companies such as CMR Surgical already agreeing to an export deal worth in the region of £200 million.
Biotransformation technology firm Polymateria, data centre Kloudpad, and drone manufacturer Vidrona are also among those to have agreed on a new export deal with India.
Commenting on the deal, Prime Minister Boris Johnson said the Enhanced Trade Partnership will “unlock new opportunities” for British businesses exporting to India and Indian businesses investing in the UK.
“In the decade ahead, with the help of the new Partnership signed today and a comprehensive Free Trade Agreement, we will double the value of our trading partnership with India and take the relationship between our two countries to new highs,” he said.
The latest statistics suggest that trade between the UK and India is currently worth around £23 billion a year and supports some half a million jobs.
However, a future UK-India free trade deal could slash tariffs on thousands of products, such as whisky and automotive goods, which currently attract rates of 150 per cent and 125 per cent, respectively.
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