Sir Keir Starmer and Narendra Modi hailed a “historic day” on Thursday as they signed a free trade agreement between the UK and India. The deal, projected to boost the UK economy by £4.8bn a year and attract £6bn of investment, was finalised after nearly three and a half years of negotiations.
Speaking at Chequers, the prime minister’s country house in Buckinghamshire, the two leaders described the agreement as a “step-change” in bilateral relations. Modi, speaking through a translator, said the UK and India were “natural partners”. The deal will reduce average tariffs on UK goods from 15% to 3%, with whisky tariffs halved initially and reduced further in the coming years.
Critics, however, have questioned the agreement’s provisions. Tom Wills of the Trade Justice Movement said it “fails to include binding protections for labour rights, environmental standards or public health”. The London Mining Network warned it “lacks robust climate safeguards”, particularly on coal extraction in India.
Negotiations continue on a bilateral investment treaty, which would benefit the City of London, but UK officials believe it is unlikely to be agreed. The two governments also remain at odds over the UK’s planned carbon border tax, which India strongly opposes.
During their talks, Starmer and Modi also discussed the Air India plane crash last month and broader cooperation. Downing Street said Starmer raised the case of Jagtar Singh Johal, a Sikh activist from Dumbarton detained in India since 2017 on terror charges. Johal, who denies the allegations and claims he was tortured, has been cleared of one of nine cases against him.
