UK and India agree to the commercial deal “Teacher”

After three years of indirect negotiations, the United Kingdom and India have agreed to a commercial deal that will make it easier for UK companies to export whiskey, cars and other products to India, and reduce taxes on exports of clothing and shoes in India.

The British government said the deal does not include any change in immigration policy, including towards Indian students studying in the United Kingdom.

Business Secretary Jonathan Reynolds said the benefits of companies and consumers in the United Kingdom were “huge”.

The total trade between the United Kingdom and India last year reached 41 billion pounds and is expected to grow, but the government said that the deal will strengthen this trade by 25.5 billion pounds annually by 2040.

Mr. Reynolds met with his Indian counterpart, Bush Joyal, in London last week to finish the touches on the deal.

Once it enters into force, which may take up to a year, the UK consumers may benefit from the low definitions of goods coming to the country from India, the Ministry of Business said.

In addition to clothes, this will include some Indian foodstuffs, such as frozen shrimp.

The government also confirmed the benefit of economic growth and creating job opportunities from UK companies to expand exports to India.

The gene and whiskey tariff will decrease to 75 %, with more discounts in subsequent years.

The fees on cars, space, electricity and some food products in the United Kingdom will decrease.

The British government said that the deal was a “largest and most important” trade agreement signed by the United Kingdom since its departure from the European Union in 2020.

Prime Minister Sir Kerr Starmer described him as a “prominent deal” that would enhance growth and “surrender to the British people and business.”

Indian Prime Minister Narendra Modi described the deal as a historical teacher that was “an ambition and useful for both parties.”

India is expected to become the third largest economy in the world in a few years.

The tariff campaign on US President Donald Trump in other countries focused on how to respond, and increased the motivation to conclude commercial deals.

The UK is also a highly priority commercial partner for Prime Minister Moody’s government, which has an ambitious target for export development by a trillion dollars by 2030.

“It can be said that this most transformative deal for free trade in the United Kingdom after Britain’s exit from the UK agreement is lined, especially because of the size of India, the rate of growth and relatively high barriers to reaching its market,” said Alli Renison, a former government commercial advisor.

She said: “Although negotiations were heading for several years with a number of obstacles, it seems that this government was keen to resolve it to obtain the deal on the line.”