India’s Prime Minister Narendra Modi’s official visit to the UK saw the signing of a "landmark" free trade deal, with the UK Prime Minister Sir Keir Starmer hailing the event as a "historic day."
The deal is expected to see £6 billion invested into the UK economy, creating 2,200 jobs, making it the largest deal of its kind when measured in economic impact on Britain.
As Starmer met with his Indian counterpart Narendra Modi at his country estate Chequers, he said they had agreed in autumn to make a “step change” in the two countries’ relationship.
The PM added: “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.”
Speaking through a translator, Modi described the UK and India as “natural partners” and said the nations were “writing a new chapter” in a shared history.
As part of the deal tariffs on a range of British goods will be reduced from an average of 15% to 3%, in hopes of boosting imports into the south Asian nation.
Whisky tariffs will be slashed in half, and are expected to fall further over successive years.
Soft drinks, cars and cosmetics will also see cheaper duties.
Before his meeting with Modi to confirm the deal, 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."
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".
The Prime Minister and his Indian counterpart also agreed ahead of their meeting to ramp up joint efforts to tackle corruption, fraud, organised crime and illegal migration, by sharing criminal records and other intelligence.
The deal promises some benefits to the UK’s financial services, but not as much as the Government would have liked.
It is understood that talks continue regarding a bilateral investment treaty aimed at protecting investments in both countries.
The two nations also continue to discuss UK plans for a tax on high-carbon industries, which India believes could hit its imports unfairly.
The deal has been in the works for several years. Negotiations first began in 2022 under Boris Johnson, and were concluded in May this year.
