- New figures show trade deal with India will deliver £210 million for the North West economy as part of the Plan for Change
- Around 1,000 North West businesses exported £412 million worth of goods to India last year, which could grow even more under the new deal
- Comes as Prime Minister welcomes Prime Minister of India Narendra Modi to UK for signing of most comprehensive trade deal India has ever agreed
Businesses and workers in the North West are set to benefit from the UK’s trade deal with India, as new analysis shows the landmark agreement will deliver a £210 million boost for 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.
939 North West businesses exported goods worth £412 million to India last year, which could grow even more under the new deal. The region’s strong automotive sector, which sustains one in nine UK automotive workers, could see a boost thanks to tariffs on automotives being reduced from up to 110% to 10% under a quota while also sustaining the UK’s transition to electric vehicles.
Business and Trade Secretary Jonathan Reynolds said:
“The millions brought to the North 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.”
Liverpool City Region Mayor Steve Rotheram said:
“This is a landmark deal that has the potential to be a real shot in the arm for our economy, unlocking £210 million in regional growth and giving local businesses better access to one of the world’s largest and fastest-growing markets.
“From advanced manufacturing in Halton and cutting-edge AI in Liverpool to our world-leading life sciences cluster, the Liverpool City Region is already home to many of the industries set to benefit most from this agreement. And with the University of Liverpool preparing to open its first international campus in Bengaluru, our ties with India are becoming even stronger – academically, economically and culturally.
“This deal is a chance to further deepen those ties – growing our economy, creating new jobs, and building lasting partnerships that will shape our region’s future on the global stage.
“We’ve always been a place that looks outward; a gateway to the world. And today’s announcement shows we’re ready to take that ambition to the next level.”
Workers in the North 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.
For businesses in the North West this could mean potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods.
India’s trade weighted average tariff will drop from 15% to 3% which means companies in the North West selling products to India 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 such as financial services in the North West, which is a significant hub. This agreement will lock in India’s cap of 74% on foreign investment in the banking and insurance sector and ensure UK financial services firms are treated fairly when supplying services into India.
Manchester Airport recently launched a direct route to Mumbai with India’s largest airline, IndiGo – its first ever service into Europe.
Manchester Airport Managing Director Chris Woodroofe said:
“We are proud this new route with IndiGo will deliver growth here in the North, and for the UK as a whole.
“Boosted by the new UK-India FTA, the direct connectivity it provides will unlock opportunities for the region’s businesses to trade with India and will facilitate investment into the UK.
“That will help turbo charge the Government’s Industrial Strategy by boosting innovation and productivity in the sectors that will sit at the heart of the country’s future prosperity.”