VK and India are agreed historical trade agreement

After three years of negotiations, the VK and India have agreed a trade agreement that will make it easier for British companies to export whiskey, cars and other products to India and lower taxes on the clothing and footwear exports in India.

The deal does not include any change in immigration policy, including the Indian students studying in the UK, the British government said.

Business secretary Jonathan Reynolds said that the benefits for British companies and consumers were “huge”.

Last year the trade between the VK and India was £ 41 billion and would be expected to grow, but the government said that the deal would stimulate that trade with an extra £ 25.5 billion a year by 2040.

Reynolds met his Indian counterpart Piyush Goyal in London last week to put the finishing touches to the deal.

As soon as it enters into force, which could take up to a year, the British consumers would probably benefit from the reduction of rates on goods that enter the country from India, the Ministry of Business said.

The government also emphasized the benefit for economic growth and the creation of jobs by British companies that expand export to India.

It is predicted that India will be the world’s third largest economy in a few years.

The tariff campaign of US President Donald Trump has the spirit in other countries aimed at responding and have increased the impetus to conclude trade agreements.

The UK is also a trading partner with a high priority for the government of Indian Prime Minister Narendra Modi, who has an ambitious goal to grow exports by $ 1 trillion by 2030.