Key facts
- UK ministers are on a trade mission to India to restart free trade agreement negotiations.
- The trade deal aims to lower tariffs and increase trade between the UK and India.
- India is projected to become the world's third-largest economy by 2028.
- The UK government views a trade deal with India as a significant opportunity.
- The trade mission includes 125 UK CEOs, entrepreneurs, and university leaders.
UK ministers, including Business and Trade Secretary Jonathan Reynolds, have embarked on a trade mission to India to relaunch negotiations for a free trade agreement. The trip aims to capitalize on the momentum from a UK-India trade deal signed in July, which is expected to lower tariffs and open access for British businesses to India's rapidly growing economy.
Reynolds met with his Indian counterpart, Piyush Goyal, on Sunday to kickstart the 15th round of trade negotiations. This initiative is considered a top priority for the UK government, aiming to boost the nation's economy. The trade deal, once implemented, is projected to increase UK GDP by £4.8 billion annually, add £2.2 billion to wages, and raise bilateral trade by £25.5 billion per year, with UK exports to India expected to grow by nearly 60%. The average tariff on UK products entering India is set to drop from 15% to 3%.
Prime Minister Keir Starmer highlighted the trade deal as a "launchpad for growth," emphasizing the unparalleled opportunities as India is poised to become the third-largest economy by 2028. Business and Trade Secretary Peter Kyle noted that the deal places British businesses at the "front of the queue" to access the Indian market. The delegation accompanying the ministers includes 125 prominent UK CEOs, entrepreneurs, and university leaders, representing major companies like Rolls-Royce, British Telecom, Diageo, London Stock Exchange Group, and British Airways, as well as growing SMEs from across the UK.
Separately, Iowa Governor Kim Reynolds is also leading a 10-day trade mission to India, focusing on strengthening trade and investment relationships, particularly in advanced manufacturing, biotech, finance, insurance, and agricultural exports. Her delegation includes Iowa Economic Development Authority and Iowa Finance Authority Director Debi Durham and Iowa Secretary of Agriculture Mike Naig.