Keir Starmer and Narendra Modi set to sign off on Britain-India trade deal

Sir Keir Starmer and India’s Narendra Modi are set to sign off on a trade deal worth £6 billion in investment for the UK economy.

The Prime Minister and his Indian counterpart also agreed ahead of their meeting on Thursday to ramp up joint efforts to tackle illegal migration and organised crime.

The UK-India trade deal is understood to be the largest of its kind for its economic impact on Britain.

It will see tariffs on an array of British goods reduced from an average of 15% to 3%, with the aim of boosting the £11 billion of imports into the south Asian nation.

Whisky tariffs

Whisky tariffs will be slashed in half, according to the Government, and will fall further over successive years, 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, Sir Keir 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 £6 billion 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.”

Corruption

The UK and India are also bolstering co-operation on tackling corruption, fraud, organised crime and illegal migration, by sharing criminal records and other intelligence.

The deal has not given the UK as much access as it would have liked to India’s financial and legal services industries.

The agreement promises some benefits for the UK’s financial services, with Chancellor Rachel Reeves understood to have pushed on behalf of the sector in discussions with her Indian counterpart.

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.

Labour sought to portray closing the deal, as well as trade agreements with the US and the EU, as evidence of the Government’s pragmatism and global outlook.

But shadow business secretary Andrew Griffith said it had only been made possible “because of Brexit delivered by the Conservatives”.

He added: “Any trade deal that can successfully cut regulation which stops Britain’s makers from creating new jobs and wealth will be a step in the right direction.

“But the irony should not be lost on anyone that any gains from this trade deal will be blown out of the water by (Deputy Prime Minister) Angela Rayner’s union charter, stifling business with red tape, the jobs tax and, come autumn, Rachel Reeves’ inevitable tax hikes that will punish Britain’s makers just to reward those who do not contribute.”

CBI

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.”

Elsewhere, Sir Keir is facing calls to raise the case of Jagtar Singh Johal, a British citizen who has been detained in India since 2017, when the Prime Minister meets Mr Modi.

The Scottish Sikh is accused of being a member of the Khalistan Liberation Force, which is banned as a terror group in India.

His family say he is being arbitrarily detained, with his brother Gurpreet Singh Johal insisting the matter should be “high on the agenda when the prime ministers meet”.