Britain and India to sign £5bn landmark trade deal

Sir Keir Starmer and Narendra Modi are set to sign off on a trade deal worth £4.8bn in investment for the British economy. The prime minister and his Indian counterpart also agreed ahead of their meeting today to ramp up joint efforts to tackle illegal migration and organised crime.

- DAVID LYNCH

The UK-India trade deal is understood to be the largest of its kind for its economic impact on Britain. It will see tariffs on an array of British goods reduced from an average of 15 per cent to 3 per cent, with the aim of boosting the £11bn of imports into the south Asian nation.

Ministers said the deal was expected to eventually benefit the UK economy by £4.8bn a year. Mr Modi is expected to visit King Charles and meet Indian and UK business leaders during his fourth visit to the country today. Sir Keir will separately highlight £6bn of “new investment and export wins” between the two countries, although most of this figure is made up of previously announced Airbus sales to Air India.

Whisky tariffs will be slashed in half, according to the government, and will fall further over successive years, while other industries including soft drinks, cars and cosmetics are also expected to see cheaper duties.

Before his meeting with Mr Modi to confirm the deal, Sir Keir said: “Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.