£1 billion UK-India trade deals will create 6,000 UK jobs, says Boris
Boris Johnson will host bilateral talks with India’s prime minister today, announcing the potential for up to £1bn of new trade and investment. Johnson and Modi were due to meet this weekend face to face to discuss the potential free trade agreement, however due to a surge in Coronavirus infections in India, the talks were held virtually instead. The deal, which experts suggest is worth £50-100 billion, is a priority for both countries, and will be a centre piece of Johnson’s post-Brexit economic plan.
Johnson and Modi will agree a number of key investments and a route towards a new free trade agreement in today’s meeting, which Downing Street said would create 6,500 British jobs and contain more than £533m of new Indian investment into the UK, in sectors such as health and technology. Although no timeframe has been given for this, it is an important step in the right direction for both countries, particularly for the UK as the global focus shifts towards the Indo-Pacific region.
India is expected to be the third largest economy by 2030, and the vast majority of population growth and GDP is expected to be seen in emerging markets such as India. It is therefore of vital importance that the UK positions itself as an ally and a symbiotic trade partner to these rapidly growing economies to make sure it is ready for the world of tomorrow.
Nayan Gala, co-founder of venture capitalist firm JPIN VCATS, comments on the importance of a future free trade deal:
“It’s great to see that the UK and Indian governments have agreed to this trade partnership. India is a 21st century powerhouse the UK-India trading relationship is already worth almost £24 billion, with 383 Indian companies in the UK employing more than 82,000 people.
The ETP will help to fuel economic recovery in a post-Brexit, post-Covid UK and really allow the UK to benefit from the immense growth India is about to experience in the coming decade. A free trade deal with India could be as high as £50-100 billion and will open the door to 1.3 billion potential customers for UK businesses, and provide opportunities for business improvement, consolidation, foreign expansion and diversification in a rapidly growing market.”
