Chamber welcomes UK and India trade deal which offers ‘substantial opportunities’

THE Hull & Humber Chamber of Commerce has welcomed a new trade deal between the UK and India that will make it easier for UK firms to export their goods.

The “landmark” agreement will see UK exports of whisky, cars, foodstuffs and jewellery and gems simplified while the UK will cut taxes on India’s clothing and footwear exports, as well as cosmetics and food products in a deal which took three years to negotiate and is predicted to boost trade between the two countries by £25.5bn a year by 2040.

Chamber Chief Executive, Dr Ian Kelly, said: “In a rapidly changing world we welcome this major trade deal with India which has strong historic ties with the UK. The export opportunities both for goods and services are substantial and the removal of tariffs highlights an important way forward in a geo politically shifting world.”

Reacting to the announcement, William Bain, Head of Trade Policy at the British Chambers of Commerce, said: “A Free Trade Agreement (FTA) between the UK and India is a huge boost to our economies and a welcome lift for our exporters. Both Governments should be congratulated for their strong engagement with business and hard work throughout long, but ultimately successful, negotiations.

“Against the backdrop of mounting trade uncertainty across the globe, these tariff reductions will be a big relief. Products from Scotch whisky to clothing will benefit and this will give UK companies exporting to India a clear edge on increasing sales. 

“There is great potential for future expansion with a trusted trading partner in the fastest growing region of the world’s economy.  

“Alongside our strengths in services trade, particularly in business, travel and transport services, this agreement can offer real hope that our bilateral trade will grow strongly.  

“The proposals for a follow-up Investment Treaty will also provide a solid platform to grow manufacturing and other sectors in our two economies. 

  “Negotiation is the best way to deliver results for business in trade. Chambers look forward to working with companies of all sizes to use this landmark agreement to drive a step change in exports and economic growth.”  

Richard Heald, Chair of the UK India Business Council (UKIBC) - a member of the BCC’s international Chamber Network, said: “The UK India Business Council welcomes the signing of the FTA between the United Kingdom and India. This marks a significant milestone in the deepening of economic and strategic ties between our two nations.  

“It matters when the fifth and sixth largest economies in the world reach a trade agreement. Such an agreement is illustrative of the positive momentum in the UK-India relationship, the commitment and ambition of both Governments, and the opportunities for greater trade, investment and collaboration between our countries.  

“While we await the full details of the agreement, we are optimistic that it will pave the way for enhanced trade flows, increased investment, and strengthened business partnerships across key sectors. 

“The UKIBC stands ready to support our members, clients, and stakeholders in navigating the opportunities the FTA presents, and we will continue to work closely with both governments to ensure the agreement delivers tangible benefits for businesses of all sizes.  

“We understand that signing of the agreement is a starting point and it will need a Parliamentary signoff to enter into force, allowing businesses to take advantage of the new trade rules and opportunities.”