Keir Starmer and Indian Prime Minister Narendra Modi have signed a landmark deal more than three years after shamed Boris Johnson said he’d get it done within months
The UK and India have finally signed a historic treaty – three years after Boris Johnson said he would have one agreed in months.
The two nations reached a trade deal worth £6billion in investment for the British economy. Keir Starmer and Indian Prime Minister Narendra Modi also vowed to ramp up efforts to tackle illegal migration and organised crime.
The deal – signed by Business Secretary Jonathan Reynolds and his Indian counterpart Piyush Goyal – is said to be the largest of its kind in terms of economic impact on Britain, and is expected to directly create more than 2,000 new jobs. It will see tariffs on an array of British goods sliced from an average of 15% to 3%. It is hoped this will be a massive boost to the £11billion of imports into India.
Mr Starmer told Mr Modi at the PM’s country estate Chequers in Buckinghamshire: “So I’m really pleased and privileged to welcome you here today on what I consider to be a historic day for both of our countries, and the delivery of the commitment that we made to each other.”
Mr Modi, speaking via a translator, described the UK and India as “natural partners”. He said the nations were “writing a new chapter” in a shared history.
Among the major breakthroughs is slashing whisky tariffs in half, while other industries including soft drinks, cars and cosmetics are also expected to see cheaper duties. Before his meeting with Mr Modi to confirm the deal, Mr Starmer said: “Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.
“We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.”
The deal is expected to result in 2,200 jobs across the country and £6billion per year investment by British and Indian businesses. Business Secretary Jonathan Reynolds said the investment will “reach all regions and nations of the UK so working people in every community can feel the benefits”.
He added: “The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business.”
The Government said the two nations will also increase co-operation on tackling corruption, fraud, organised crime and illegal migration, by sharing criminal records and other intelligence. The agreement promises some benefits for the UK’s financial services, with Chancellor Rachel Reeves understood to have pushed on behalf of the sector.
But more wide-ranging access was not agreed, and talks continue on a bilateral investment treaty aimed at protecting British investments in India and vice versa. The two nations also continue to discuss UK plans for a tax on high-carbon industries, which India believes could hit its imports unfairly.
Negotiations on the deal began when Boris Johnson was prime minister in 2022, and were concluded in May this year. In April 2022 the shamed Tory leader pledged to get a deal done by Diwali in October that year.
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.”