India-UK Trade Deal Set to Slash Prices and Create Thousands of Jobs, Say PM Modi and Starmer

British Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi, after signing a historing India-UK Free Trade Agreement, addressed a landmark press conference on Thursday and emphasized the historic significance of the recently signed India-UK Free Trade Agreement (FTA). Prime Minister Starmer highlighted the deal’s direct benefits for British consumers, stating, "This will be a good deal for our consumers as it will bring prices down for clothes and shoes," reflecting the expected tariff reductions and enhanced market competition following the agreement.

Calling the pact a “landmark deal,” Starmer noted that it will create thousands of British jobs, attract investment, and stimulate business growth across the UK. “It creates thousands of British jobs, unlocks new opportunities for businesses, and puts money in the pockets of working people. That’s our Plan for Change in action,” he said, framing the FTA as a cornerstone of his government’s economic strategy to raise living standards and fuel growth.

Echoing the spirit of partnership, Prime Minister Modi described the occasion as historic, saying, "India-UK relations this day is historic as we sign a comprehensive economic trade agreement." Modi framed the FTA not just as an economic pact but as a blueprint for shared prosperity between the two nations.

He stressed that the deal will reduce the cost of doing business and boost investor confidence in both countries. Modi also unveiled the “Vision 2035,” a joint roadmap aimed at deepening bilateral trade and cooperation in the coming decade.

India-UK FTA

The agreement notably cuts average tariffs on British goods entering India from 15% to 3%, making products like clothing, footwear, soft drinks, cosmetics, medical devices, automobiles, and whisky significantly more affordable for Indian consumers.

This tariff reduction complements reciprocal tariff eliminations on nearly 99% of Indian exports to the UK, benefitting sectors such as textiles, leather, gems and jewellery, marine products, and organic chemicals.

Beyond tariffs, the FTA incorporates measures to simplify regulatory compliance, promote digital trade, boost intellectual property protections, and support sustainable production methods. These provisions aim to strengthen economic ties, foster job creation, and enable businesses in both countries to thrive in a rapidly evolving global market.

Also Read: India and UK Sign Landmark Free Trade Agreement to Boost Bilateral Trade