Jonathan Reynolds

Here’s a breakdown of the article, highlighting the key aspects of the UK-India trade agreement:

Headline: UK and India sign landmark post-Brexit trade deal.

Key Takeaways:

Significance: This is the UK’s first major post-Brexit trade agreement. Both governments hail it as a milestone in their economic relationship.
Benefits for India:
Exports: Near-zero duty access to the UK for Indian exports like textiles, gems and jewelry, seafood, leather goods, engineering products, and processed foods.
Job Creation: Elimination of tariffs on key Indian exports is expected to boost job creation and growth in labor-intensive sectors.
Services Professionals: Relaxed visa rules and a landmark social security arrangement for Indian service professionals.
Work Opportunities: Easier access to work in the UK for Indian professionals, with 35 sectors open for them to work for up to two years without a local office. this includes freelancers, chefs, musicians, yoga instructors, and contract workers.
IT Professionals: Over 60,000 IT professionals annually could benefit, particularly those working for major Indian IT firms.
Social Security Exemption: Indian professionals on short-term assignments are exempt from UK social security contributions for up to three years, easing financial and compliance burdens.
Benefits for the UK:
Exports: 90% of UK exports to India will become cheaper, with 85% becoming duty-free over ten years.
Government contracts: British companies can bid on non-sensitive Indian government contracts worth over Rs 2,000 crore, possibly leading to over 2,000 new jobs and a £2.2 billion wage boost.
Financial Services: UK firms will receive treatment on par with Indian companies in the financial sector.
Investment: 26 UK companies will launch new ventures in India, and Indian firms have committed nearly £6 billion in investments into the UK.
Consumer benefits: Consumers on both sides will benefit from greater choice and lower prices due to reduced tariffs on goods like chocolates, cars, medical devices, aerospace parts, whisky, and cosmetics.
Sectoral Projections:
leather industry expects to capture an additional 5% of the UK market within two years.
Engineering and electronics exports could double by 2030.
Chemical exports are projected to rise by 40% in the next fiscal.
Software services are expected to grow by 20% annually.
Intellectual Property: The deal includes dedicated chapters on intellectual property.
Affordable Medicine: Assurances have been given that india’s generic drug production rules will not affect affordable medicine access.
Quotes:
PM Modi: Described the pact as a “new roadmap for shared prosperity.”
Agneshwar Sen (EY india): Called it a “transformative move” and said, “Consumers on both sides will be the ultimate winners with greater choice and lower prices.”
Puneet Gupta (EY India): Highlighted the social security exemption as making “overseas assignments more viable and efficient for global employers.”
PM Keir Starmer: Called it a “big win for Britain” that would create jobs and bring investment.

Overall: The agreement aims to foster closer economic ties, boost trade and investment, and create opportunities for businesses and professionals in both the UK and India.