Businesses across India and the United Kingdom have welcomed the free trade agreement between the two countries with open arms. The agreement, which was signed on Thursday after negotiations that lasted for around three years, will make it easier for traders of both India and UK to do business with the other country.
While for India, 99 per cent exports will see duty-free access to the UK, unlocking nearly $23 billion in opportunities for labour-intensive sectors, the United Kingdom will enjoy a collective uplift in wages of £2.2 billion (around $2.85 billion) each year and could also see cheaper prices and more choice on clothes, shoes, and food products, along with several tariff slashes.
Also read: Duty on single malt cut by half: What gets cheaper with key India-UK trade deal
With this trade deal, several UK businesses will have better access to the Indian market and vice versa. Many products made in the UK, such as cars, medical equipment, cosmetics, and whisky among others, will potentially be available in India for more affordable prices.
How UK businesses reacted to the FTA
Tufan Erginbiligic, Chief Executive Officer of luxury car maker Rolls-Royce, welcomed the agreement and said that the FTA will benefit Rolls-Royce and their customers, paving the way for future aerospace growth in India. “India is an important market for our business, with over 90 years of partnership with Indian industry and the Indian Government. We welcome the provisions in this Free Trade Agreement, including those that bring closer alignment with international standards for trade in civil aerospace. These agreements will benefit Rolls-Royce and our customers, paving the way for future aerospace growth in India,” he said.
{{/usCountry}}Tufan Erginbiligic, Chief Executive Officer of luxury car maker Rolls-Royce, welcomed the agreement and said that the FTA will benefit Rolls-Royce and their customers, paving the way for future aerospace growth in India. “India is an important market for our business, with over 90 years of partnership with Indian industry and the Indian Government. We welcome the provisions in this Free Trade Agreement, including those that bring closer alignment with international standards for trade in civil aerospace. These agreements will benefit Rolls-Royce and our customers, paving the way for future aerospace growth in India,” he said.
{{/usCountry}}Also read: India-UK sign FTA, PM Starmer calls it 'most significant' deal since EU exit
His remarks come as Airbus & Rolls-Royce will soon begin delivering Airbus aircraft – with over half powered by Rolls-Royce engines – to major Indian airlines as part of around £5 billion worth of contracts recently agreed.
Johnnie Walker chief on India-UK FTA
Nik Jhangiani, the interim Chief Executive of Diageo - the UK company behind iconic scotch whisky brands such as Johnnie Walker, said that the “agreement marks a great moment for both Scotch and Scotland.” “We’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured,” he said.
Under the FTA, it will be easier for British firms to also export whisky to India with tariffs slashed in half, reduced immediately from 150 per cent to 75 per cent and then dropped even further to 40 per cent over the next ten years.
Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said that the FTA is “a sign of hope in challenging times for the spirits industry”. “India is the world’s biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s,” he said.
“The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade,” he added.
William Bain, head of trade policy at British Chambers of Commerce, said that the FTA “will open a new era for our businesses and boost investment between two of the world’s largest economies.”
“Currently around 16,000 UK companies are trading goods with Indian companies, and there is high interest in our Chamber Network to grow that. This deal will create new opportunities in the transport, travel, creative and business support sectors alongside traditional strengths in finance and professional services,” he said.