It may have taken three years of negotiations, but the UK and India have finally established a landmark trade agreement.
If you are a UK business operating in India, or import and export goods from there, then this is an exciting opportunity.
We are going to break down the deal and determine how your business can most effectively leverage it.
What is the UK-India trade deal?
The trade deal centres on making deals between the two countries more cost-efficient for businesses and consumers.
Hailed as the most economically significant bilateral agreement the UK has signed since Brexit, it is believed that the deal may increase trade between the two countries by £25.5 billion a year by 2040.
The main feature of the deal is the reduction or removal of tariffs on some key UK exports.
These include:
Meanwhile, imported Indian goods, like clothing, jewellery and frozen seafood, are going to become more affordable.
This will enhance consumer choice and boost supply chain diversity.
Anything that cuts costs for the common person is a boon for all businesses, as it means there may be more ready cash to spend on the goods and services you provide.
What happens now?
Unfortunately, the deal may take some time, as much as a year, to fully come into effect.
In the meantime, it would be wise to start preparing for the new economic status quo.
An additional boon of the agreement is the new provision on social security contributions.
Employees who are temporarily transferred between the two countries will be exempt from paying double and will only need to pay into the home country’s system.
This means that you may be better able to deploy talent where it is most needed without the risk of making it economically unviable.
This could pave the way to a new wave of procurement contracts, which represents an exciting new future for businesses.
This is coupled with an emerging trade deal between the UK and the US, which may also yield some positive economic opportunities.
The global economy is shifting once more, and now is the time to seek professional advice to stay ahead of the changes.
Make the most of the new UK-India trade deal by speaking to our team today.
