PM announces new £1bn trade agreement with India

Prime minister Boris Johnson has announced a new £1bn trade agreement with India which will create more than 6,500 UK jobs.

The agreement includes an enhanced trade partnership which will unlock new opportunities for British businesses exporting to India and vice-versa and will pave the way for future UK-India free trade agreements.

The package contains over £533m of new Indian investment into the UK, which is expected to create more than 6,000 jobs in vital and growing sectors such as health and technology. It also includes a £240m investment by the Serum Institute of India in the UK into the vaccine business and a new sales office which will create a large number of jobs.

British businesses have also secured new export deals with India worth more than £446m which will drive UK growth and create more than 400 British jobs. This includes industries such as food and drink, life sciences and the service sector. Additionally, non-tariff barriers on fruit and medical devices will be lowered.

Trade between the UK and India is already worth around £23bn a year, supporting more than half a million jobs.

With almost 1.4 billion people, India’s population is bigger than both the EU and US combined and will be by far the largest market the UK has committed to negotiating a trade deal with to date.

Johnson said: “Like every aspect of the UK-India relationship, the economic links between our countries make our people stronger and safer. Each and every one of the more than 6,500 jobs we have announced today will help families and communities build back from coronavirus and boost the British and Indian economies.

“In the decade ahead, with the help of the new Partnership signed today and a comprehensive Free Trade Agreement, we will double the value of our trading partnership with India and take the relationship between our two countries to new highs.”