Businesses and workers in the South West are set to benefit from the UK’s trade deal with India as new analysis shows the landmark agreement will deliver a £150 million to the local economy as part of the Plan for Change.
Both Prime Ministers met yesterday morning for the signing of the landmark UK-India trade deal as new analysis reveals communities across every region of the UK will benefit from its £4.8 billion increase to UK GDP each year.
It comes as a series of investment and export wins have been confirmed by UK and Indian businesses, representing an overall boost of nearly £6 billion and creating over 2,200 jobs.
686 businesses in the South West exported £579 million in goods to India which could grow even more under the new deal. Specialist manufacturing companies based in the South West, such as those in the aerospace or precision engineering sectors, will also significantly benefit from reduced tariffs and improved processes that will enable them to more easily sell into India’s market. India is also a major manufacturing hub, and liberalised tariffs under this agreement could mean potential savings as they source the intermediate parts or components required within their own supply chains.
Business and Trade Secretary Jonathan Reynolds said:
“The millions brought to the South West each year from the deal we’ve signed with India will be keenly felt across local communities, whether that’s higher wages for workers, more choice for shoppers, or increased overseas sales for businesses.
“This government is proving time and again that we can deliver on our mission to grow the economy, put more money in pockets and boost living standards under our Plan for Change.”
Helen Godwin, Mayor of the West of England, said:
“The government’s historic hattrick of trade deals are great news for the West – with a £150 million boost anticipated for our wider region thanks to the new deal strengthening our ties with India.
“Firms here in the West Country have told me that these landmark agreements give them real confidence for future sales, with welcome protections also announced for our creative sector.
“Businesses in the wider region already export almost £600 million of goods to India. That figure is surely set to grow, thanks to average tariffs dropping by more than three-quarters and smoother processes for British products sought by companies and consumers in India.”
Workers in the South West will enjoy an uplift in pay as UK wages grow by £2.2 billion each year, and could also see cheaper prices and more choice on clothes, shoes, and food products. The UK already imports £11 billion in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper to buy their best products.
India’s trade weighted average tariff will drop from 15% to 3% which means companies in the South West selling lamb or gin to India under reduced tariffs will find it easier to sell to the Indian market. It gives the UK an advantage over international competitors in reaching the Indian market, forecast to have over a quarter of a billion high income consumers by 2050.
Aligned with the UK’s recent Industrial and Trade Strategies, the deal will support the sectors which drive the most growth for the economy, including cosmetics manufacturing and green technologies. The South West’s huge creative industry, which employs around 175,000 people, is set to benefit from copyrighted works being protected for at least 60 years.
India also has an increasing demand for healthy, high-quality products, and immediate tariff cuts for unprocessed shellfish from 33% to zero will open major opportunities for South West exporters of scallops and crabs.
Nick Spencer, Export and Travel Retail Manager at Southwestern Distillery Ltd, said:
“There are tremendous hurdles for UK spirits producers in terms of entering and succeeding in the Indian market. The extremely high import tariffs are probably the most significant barrier to entry we have experienced anywhere internationally.
“The FTA is a fabulous step forward. Since its announcement, we have already received significant new interest from Indian importers and the prospect of success in the Indian market now looks much brighter.”
Martin Powell, Chairman of Empica Public Relations, said:
"This is good news for the West Country and although it primarily benefits manufacturers and those who export goods it will also have a knock-on effect on the service industry who provide legal and professional support to those businesses."
