- New figures show trade deal with India will deliver £170 million for Yorkshire and the Humber’s economy as part of the Plan
for Change - Over 700 Yorkshire and the Humber businesses exported £321 million in goods 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 Yorkshire and the Humber are set to benefit from the UK’s trade deal with India, as new analysis shows the landmark agreement should deliver a £170 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.
India is a strong, growing market for Yorkshire and the Humber, where 747 businesses exported £321 million in goods last year – this could grow even more thanks
to lower tariffs, fewer barriers to trade, and easier customs.
Yorkshire and the Humber is home to the UK’s second-largest medical technology workforce, with approximately 14,800 people employed in the sector. As a result
of this trade deal, tariffs on a range of medical devices, between 8.25% to 13.75% will be halved or eliminated within 10 years.
Business and Trade Secretary Jonathan Reynolds said:
The millions brought to Yorkshire and the Humber 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.
Mayor of West Yorkshire, Tracy Brabin said:
India is already one of West Yorkshire’s most valued trading partners, with nearly a billion pounds of goods traded annually, and Indian businesses playing a vital role
in our local economy.I’m proud that our regional trade mission to India has helped pave the way, securing investment in high-quality jobs for local people while growing the economy and showing just how valuable these international connections are for
UK businesses.With one of the UK’s largest Indian diasporas here in West Yorkshire, this is about more than trade – it’s about deepening ties between communities and creating a brighter region that works for all.
Workers in Yorkshire and the Humber should 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 Yorkshire and the Humber 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 Yorkshire and the Humber selling automotive products to India from
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.
Yorkshire and the Humber is home to a large range of food and drink manufacturers, such as sweets, whisky and soft drinks. As a result of this deal, existing
tariffs of 33% on a range of UK food exports, such as chocolate, gingerbread and sweet biscuits and soft drinks will be removed within 10 years, and non-alcoholic beer will see tariffs halved over 5 years.
Mark Ridgway OBE DL, CEO of Rhodes Group, said:
As a manufacturer of advanced metalforming machinery used in the forming and lightweighting of aircraft, India is a strong market for Group Rhodes and offers significant
growth potential. The recent UK-India trade deal not only sets the scene for reduced tariffs on machinery but also serves to both enhance our competitiveness as a UK exporter and reduce the complexity of trade with this fast-growing market.Importantly, the UK-India FTA recognises UK origin content of at least 20% as qualification as a ‘local supplier’ in India. This provides equal treatment in the Indian
government procurement process and the opportunity for Group Rhodes to build on its existence reference sites within the Indian aerospace sector.
