On 13 January 2022, the UK government launched Free Trade Agreement (FTA) negotiations with India, which, if agreed, would be one of the most impactful trade agreements for the UK.
Why is an FTA with India important for the UK economy?
India is one of the world’s largest and fastest growing economies, set to become the world’s third biggest economy by 2050. With a population of 1.38bn and a growing middle class, a trade deal would allow UK businesses access to a huge consumer base and has the potential to almost double UK exports to India. This would boost the UK’s total trade by as much as £28 billion a year by 2035 and increase wages across the UK by £3 billion.
How can the deal benefit UK businesses?
Businesses could see key barriers slashed, an ambition of the UK government. Removing duties alone would increase exports to India by up to £6.8 billion, supporting tens of thousands of jobs across the UK. Important UK exports like Scotch whisky and cars currently face significant duties of 150% and 125% respectively.
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