Four things you need to know about UK-India trade deal

UK and India Signed a business deal to make each other cheaper and easier to buy and sell goods and services.

It is expected that the agreement will benefit the economies of both countries.

Sir Kir Stmper and Prime Minister of India Narendra Modi signed the agreement together, which the UK Prime Minister said that “was a historic moment for our two countries”.

Here is a quick guide what it agree and what it can mean to you.

The UK has reduced taxes on imported goods from India:

• clothes and shoes
• Food products including frozen shrimp
• Jewelry and gems
• Some cars

India has cut taxes on imported goods from the UK:

• Cosmetics
• Scotch whiskey and gin
• Soft drink
• High cost cars
• Lamb, including salmon, chocolate and biscuits
• Medical equipment
• Aerospace
• Electric machinery

The deal will allow British firms to compete for more service contracts in India.

The business deal will not apply for one year, so do not expect to notice any immediate changes.

However, over time, the UK government says that reduce tariffs on clothing, jewelery and frozen shrimp’s choice can lead to cheap prices and more options.

The deal can also be a major victory for the UK businesses that manufacture items that have seen tariffs, such as car manufacturer and whiskey distillers.

For example, the whiskey and the tariffs being imported from Britain to India will be reduced to 150% to 75% before the 10th year of the deal reduced by 40%.

The car tariffs will increase from 100% to 10%.

This will promote two industries as it would mean that Indian companies want to import products that will pay less import duty than before.

If business exports more goods to India and earn high profit, this may cost them more on hiring, investing and paying more taxes.

In India, consumers can see a lot of options between goods that are included under the deal. Clothing business and jewelers will also be able to reach the UK market that will promote their margin.

There has been a long time to make this deal, in which conversations have been going on for some three years.

However, it appears that US President Donald Trump has launched tariffs on goods entering the US, which has inspired other world leaders to consider free-trade deals with each other.

Britain’s deal with India is the third largest after its agreements with Australia and Japan. For reference, the UK has signed trade deals and agreements in principle with around 70 countries and one European Union.

The European Union is the largest trade partner for both the UK and India. Therefore, a free trade agreement between India and the European Union would be more than one with Britain. Both India and European Union have said Aim to finalize it by the end of 2025.

Last year, there was a total of £ 42BN in trade between UK and India. The UK government has said that the deal will promote that trade from 25.5.5BN additional £ 25.5BN per year by 2040.

What does it say Impact of Free Trade Agreement with India AssessmentThe government said that over time it will increase the UK economy to £ 4.8BN. This is a small ratio of the UK economy priced at £ 2.8 trillion last year.

However, India is also expected to become the third largest economy in the world in a few years. It is also home to 1.45 billion people – about 20 times the British population – which are a lot of potential customers.

The UK is also a high -priority trading partner for India, which is an ambitious target to increase exports by $ 1TN (£ 750BN) by 2030.

One of the reasons for the reasons for the UK’s free trade deal is that India had demanded a great demand for Indian professionals and students to work abroad and study.

The British government said that it does not include any change in immigration policy, including Indian students studying in Britain.

But this includes a three -year discount on social security paid by Indian employees working in the UK on short -term visas. They will only pay social security contribution to their country.

Known as a Double Contribution Convention (DCC), this agreement is designed to ensure that social security contribution has not been made in more than one countries.

The UK has similar mutual DCC agreements with 17 other countries including the European Union, the US and South Korea.

Trade Secretary Jonathan Reynolds said that this did not mean that Indian workers would be cheaper than British employees.

“There is no tax benefit to hiring an Indian worker over a British worker,” he told the BBC.

The additional cost for visa and NHS surcharge would mean “you will actually pay more to an Indian worker”, he said, “No one is being undercurved”.