The Morning Brief
The UK-India Trade Fixit
May 9, 2025
Pallavi Joshi Bakhru, a Partner and UK Corridor Leader at Grant Thornton Bharat, joins the discussion on the ambitious UK-India trade agreement. She unpacks the potential economic benefits, including up to £900 million in tariff savings for UK exporters and improved access for Indian workers through a Social Security Agreement. They also discuss challenges like data protection and worker mobility. With insights on whether this deal can set a precedent for future agreements, particularly with the US, the conversation is a deep dive into a pivotal trade moment.
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Quick takeaways
- The India-UK trade agreement is set to significantly boost economic collaboration, with £900 million in tariff savings for UK exporters and enhanced wages in both countries.
- Despite the potential benefits, challenges like non-tariff barriers and cautious investment settlement approaches must be addressed for successful implementation.
Deep dives
Significance of the India-UK Trade Deal
The recent India-UK trade deal is the largest bilateral agreement the UK has formed since Brexit, poised to significantly influence both economies. It aims to boost the UK's GDP by £4.8 billion and increase annual wages by £2.2 billion over time. India will reduce tariffs on 90% of the tariff lines concerning 92% of UK exports, benefiting sectors like automotive, medical devices, and spirits, with whiskey tariffs halving from 150% to 75% initially. This deal is crucial for enhancing bilateral trade, which is projected to reach an additional £25.5 billion, driven largely by increased UK exports to India, reflecting a shared willingness for deeper economic collaboration.
