- Milestone trade deal with India to come into effect next
month, marking quickest ever turnaround following signature
- Businesses encouraged to prepare for entry-into-force to feel
the benefits of massive tariff cuts
- UK agreement will be the most comprehensive trade deal India
has ever brought into force
The UK and India have today (Wednesday 17th June) announced
their landmark trade deal will enter into force next month so
working people and businesses can benefit.
Businesses, who now have 28 days to prepare for the
entry-into-force, will be able to trade under its terms from July
15th, following strenuous efforts to prepare UK and Indian
systems.
The deal, which is the most comprehensive ever agreed by India,
will boost UK GDP by £4.8bn, real wages by £2.2bn and bilateral
trade by £25.5bn every year in the long run.
Industries across the United Kingdom will benefit, with whisky
tariffs cut from 150% to 40%, automotives from 100% to 10% under
a quota and cosmetics will see tariffs of up to 22% eliminated
either from day one or after 10 years.
Business and Trade Secretary said:
We are bringing our landmark trade deal with India into force as
quickly as we can, because we want businesses and the public
to feel the benefits immediately, including cuts to tariffs
of £400m within the first year alone.
The deal gives British exporters an edge over
international competitors, and I would encourage all
businesses to ensure they are properly prepared to allow them to
sell to India's huge market in the years to come.
This week our UK-India Roadshow will begin travelling across
all four nations to promote the incredible new opportunities this
deal offers.
India has never implemented a deal of this size, meaning the
UK will have an immediate competitive advantage over other
markets.
The UK will cut tariffs on Indian goods coming into the
country such as clothes, footwear, and some food products. Less
cost for British businesses importing Indian products could mean
cheaper prices and more choice for consumers across the country.
We have extended the benefit for UK nationals moving to India to
work and continue to build entitlement to a UK State Pension from
36 months to 60 months. They will continue to pay National
Insurance Contributions during that period, without also having
to pay social security contributions in India.
This is reciprocal for both British and Indian professionals
and will be applicable to highly skilled
professionals on pre-existing visa routes. This is in line
with our arrangements with other countries such as
Korea, Japan, and Canada.
This will be achieved through the UK-India Double
Contributions Convention Agreement, which will enter into force
at the same time as the UK-India FTA.
To benefit from the tariff reductions, businesses must register
with HMRC. We would now encourage businesses to use the next 28
days to register and ensure they are fully prepared to reap
the benefits of this deal.
Notes to editors:
