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Despite not being the most extensive trade agreement, the UK’s announcement of a free trade deal with India, secured by Keir Starmer, arrives at an opportune moment.
Just as US President Donald Trump was hinting at his first trade deal, possibly with Japan, South Korea, or India, Starmer has pre-empted him.
The world’s major economies are navigating complex trade negotiations, with both the EU and the UK aiming to secure a deal with the US before it potentially aligns with China, which would demote their negotiations to secondary status.
Trade experts view this as a strategic move by Starmer to remind Trump and the world that the UK is not reliant solely on the US for trade partnerships.
Starmer’s real challenge lies in reducing trade tensions with the EU, the UK’s largest trading partner, which will require a bolder approach than what has been displayed so far.
Indian Prime Minister Narendra Modi hailed the agreement as a historic milestone, while the UK government dubbed it the largest and most significant bilateral trade deal since Brexit, asserting the dominance they aspired to outside the EU.
The deal will drastically cut tariffs on 90% of British exports to India, with reduced rates on whisky and gin and a significant decrease in tariffs on cars under a quota system.
Industries such as aerospace, salmon, lamb, electrical machinery, and food sectors will also gain access to important markets in India.
Despite initial excitement, critics point out the deal’s limited scope, noting the omission of immigration and legal services, and suggesting the negotiations dragged due to these unresolved issues.
The deal is expected to boost UK-India trade by £25.5 billion, but it is seen more as a starting point rather than a complete overhaul.
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p class=”dcr-16w5gq9″>Economists and trade experts believe the deal makes sense as a progressive step but falls short of the ambitions set by the previous government as it does not include significant changes or the full potential of the UK-India partnership.</
Source: https://www.theguardian.com/politics/2025/may/06/starmer-beats-trump-to-the-line-in-race-for-trade-deal-with-india
