UK and India just recently decided to implement a trade deal on exports of whiskey, cars, and other products that are going to India. They are also cutting taxes on India’s clothing and footwear exports. The article added that this trade deal is not going to change the trajectory of the immigration policy that is already set in stone. The UK and India have traded a lot to each other, so this is going to grow their revenues by even more. “The British government said the deal was the “biggest and most economically significant” bilateral trade agreement the UK had signed since leaving the European Union in 2020.” It was also said to be a “landmark deal” that is going to boost their growth exponentially.
This deal is very important because of the tariffs that the US has been making, especially on India. They seem to be working around it and obviously are making deals with other countries so that their economy won’t die out. India is a growing country and their power is becoming threatening to others, especially the US. Their size, growth rate, and high barriers to accessing their market is what is making them threatening. This deal with probably take about a year to come in force, so that is when they will start seeing a big change.
Both the UK and India are going to benefit from this deal. Because of the US tariffs, India has shifted towards the UK more, and this is helping the UK economy and trade deals. India hasn’t always had the best relationship with many countries, so this partnership is very strategic. I’m sure they also are hoping for more global influence and are trying to shift the world power structure. This is also super important for the UK because of everything going on with the EU. They needed to build new relationships, especially trade ones, because they left the EU. India is a good partner for them because they are a big, growing market and will also benefit both countries regarding security and diplomacy.