Description: Long lasting trade negotiations between the UK and India resulted in the finalizing of a landmark trade agreement which is expected to boost the economies of both countries. UK’s Business Secretary Johnatan Reynolds met with Indian Minister of Economy Piyush Goyal last week to conclude the last steps which would effectively merge bilateral economic cooperation between the two countries. Under the terms of the agreement significant tariff exemptions are expected from India on British products such as whisky, medical devices, machinery and automotive products as well as supplementary goods and food. The UK on the other hand would cut tariffs on Indian products such as marine products, leather, textile, auto and engineering parts and jewelry. Separate parallel negotiations also concluded the integral social security issue which states that the UK would allow Indian workers on its territory exemptions from making social security contributions in the first three years. The oppositional Conservative Party in the UK raised suspicions over the legitimacy of the agreement as they stated concerns of unilateral benefits for India and the possibility the country could be excluded from UK’s Carbon Tax policy.
Impact: The conclusion of the key trade agreement between India and the UK highlights the global effect caused by the US tariffs which precipitated countries to readapt their strategic alliances and conform towards the new global geopolitical narrative. Despite facing somewhat stiff opposing winds from the opposition, Starmer’s Labor government garnered crucial political points and managed to conclude a critical partnership with India’s booming economic market. India would most likely aim at expanding the trade agreement towards a strategic partnership on the long run as the country continues to rapidly diversify its strategic portfolio of partners globally, with Europe being the latest target region. Even though some key details are yet to be hammered out, the agreement would substantially benefit both countries as they strategically edge forward.