Everything You Need to Know About the India-UK Trade Deal
On 4th May 2021, Prime Minister Narendra Modi and British Prime Minister Boris Johnson signed trade and investment deals worth $1.39 billion, after holding a virtual meeting. The UK and India are, consecutively, the fifth and sixth largest economies in the world. This meeting has been hailed as a start of a new era in bilateral relations between the two nations as… Read More »
On 4th May 2021, Prime Minister Narendra Modi and British Prime Minister Boris Johnson signed trade and investment deals worth $1.39 billion, after holding a virtual meeting. The UK and India are, consecutively, the fifth and sixth largest economies in the world. This meeting has been hailed as a start of a new era in bilateral relations between the two nations as both Modi and Johnson have expressed their commitment to a future India-UK free trade deal. These discussions will be continued in the Autumn but until then, let’s take a closer look at what’s been agreed upon so far.
Enhanced Trade Partnership
As it stands, the UK and India have formally agreed to an Enhanced Trade Partnership (ETP) which will create increased opportunities for Indian businesses to invest in the UK and UK businesses to export to India. A $755 million investment package has already been announced including a $339 million deal with the Serum Institute of India in the UK. Its sales office is expected to generate $1 billion in business, 80% of which will be invested in India and 20% in the UK.
Export deals worth $631 million have also been secured and barriers to trade addressed. The Enhanced Trade Partnership is set to boost growth in both the UK and Indian economies as well as create jobs.
6,500 new jobs in the UK have already been created because of the Enhanced Trade Partnership, predominately in the health and technology industries. For example, Infosys, an Indian multinational IT company is set to create 1,000 digital jobs in the UK. Information technology is one of India’s strengths, it accounts for 8% of its GDP and its expertise could be set to transform several UK industries.
One such industry is the online gambling industry. Advancements in technology mean that casino operators are turning their attention to providing first-class gaming experiences online and on mobile. And India is a market that UK casino operators have been looking to move into. Investments by Indian IT companies, as well as the decreased barriers to trade in India could encourage more casino operators like Spin Casino India to cater to the Indian market, offering table games, slots games, live casino games, simple sign up and deposit bonuses. There are over 420 million mobile users in India and gambling and sports betting are very popular past times, so it is a market with huge potential.
For India, the most significant part of the latest agreement with the UK is the Migration and Mobility Partnership which has been signed. Every year, three thousand young Indian professionals will have the opportunity to travel to the UK for a period of two years without being subject to a labor test. This means Indian citizens will also benefit from the increased growth and job opportunities being created in the UK.
The deal is important both for India and the UK. Trade between the two countries is currently worth $27 billion and they’re hoping to double this figure by 2030. The relationship is going to be strengthened by these new economic links and could be the start of even closer cooperation in the future.