Sir Keir Starmer has called on British business leaders to capitalize on the opportunities presented by the UK's recently signed trade agreement with India. Speaking to a gathering of business executives in Mumbai, Starmer emphasized the need to proactively "seize the opportunities" offered by the deal.
The Prime Minister, currently on a trade mission to India with 125 business and cultural leaders, has dubbed the trip the UK's largest ever trade delegation to the country. He is urging businesses to view the trade deal as a "launchpad for growth," highlighting the significantly reduced Indian tariffs for various UK industries.
"Our job is to make it easier for you to seize the opportunities," Starmer told the assembled business leaders. He further urged them to actively pursue deals and contacts during the trip, seeking tangible outcomes from the strengthened trade relations. "This is a wonderful opportunity. Let's go out and seize it," he added.
The Prime Minister has requested officials to implement the agreement, signed in July, as quickly as possible, suggesting that the deal is already positively impacting trade between the two nations.
When questioned about the possibility of easing visa restrictions for skilled Indian workers, Starmer clarified that this was "not part of the plan". He affirmed that the focus is on leveraging the existing free trade agreement.
The trade deal is projected to boost the UK economy by £4.8 billion annually and increase wages collectively by £2.2 billion. According to Starmer, the agreement is one of the most comprehensive trade deals India has ever signed and the most economically significant agreement the UK has concluded post-Brexit.
During his visit, Starmer is scheduled to meet with Indian Prime Minister Narendra Modi. While the trade deal will be a central topic, discussions may also address Modi's relationship with Russian President Vladimir Putin, potentially presenting a point of contention.
The India-UK Comprehensive Economic and Trade Agreement (CETA) aims to strengthen trade, investment, and innovation partnerships between the two countries. The leaders toured an exhibition showcasing flagship products and innovations from both India and the UK, emphasizing sectors poised for growth under the agreement.
Under the agreement, India will reduce tariffs on 90 percent of UK products, while the UK will cut duties on 99 percent of Indian exports. These reductions will significantly ease tariff and regulatory barriers, making goods such as Scotch whisky, gin, luxury cars, cosmetics, and medical devices more affordable in India. The agreement is expected to especially benefit Indian youth, farmers, fishermen, and MSMEs, while Indian consumers will gain access to more affordable UK products like medical devices and aerospace parts.
The average weighted tariff is expected to decrease from about 15% to 3%. There are significant variations above that, if you look at some of the sectors like whiskey (150% average tariff to get into that market) autos (about 110%), those are being reduced down to 10% over time for the auto sector, and also to about 40% over a couple of years for the whiskey sector.
