Britain and India have agreed to a trade deal.
Officials said that by 2040 the deal would increase bilateral trade between the UK and India by £25.5bn, the UK’s GDP by £4.8bn and wages by £2.2bn each year. British negotiators said it was the most ambitious deal ever agreed by India.
India’s tariffs on British whisky and gin will be halved from 150% to 75% before reducing to 40% by the 10th year of the deal, according to the business department.
National Insurance
As part of the agreement, the UK and India will strike a double contribution convention under which Indian workers temporarily living in the UK will not have to pay national insurance contributions for three years. The same applies to British workers in India, and meets a key demand by Delhi.
Narendra Modio wrote: “Delighted to speak with my friend PM@Keir_Starmer. In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies. I look forward to welcoming PM Starmer to India soon.”
International students
It comes as Labour targets international students claiming asylum after election losses to Reform.
Ministers will crack down on international students applying for asylum in the UK in a move designed to tackle migration figures, after a series of bruising losses to Reform in the local elections.
Nigerians, Pakistanis and Sri Lankans applying to work or study in the UK face Home Office restrictions over suspicions that they are most likely to overstay and claim asylum, Whitehall officials have claimed.
Data published in March by the Home Office showed that 16,000 of the 108,000 people who claimed asylum in the UK in 2024 held a student visa.
Some Labour MPs have urged Labour to take a tougher stance on migration to claw back Reform voters.
Jo White, MP for Bassetlaw in the north of England, said the government need to stop “pussyfooting around” and “take a leaf out of President Trump’s book”.
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