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UK Prime Minister Keir Starmer on Wednesday praised the newly clinched Free Trade Agreement (FTA) with India as a “historic” and “fantastic” milestone, asserting that the Labour government achieved what the Conservatives failed to deliver in eight years.
Speaking during the weekly Prime Minister’s Questions (PMQs) session in the House of Commons, Starmer celebrated the agreement as a major win for the UK economy. He credited the deal with slashing tariffs, creating jobs, and attracting billions in economic growth.
“Over the past week, we have secured a historic trade deal with India and a landmark agreement with the United States, protecting and creating British jobs, slashing tariffs and driving economic growth,” said Starmer. “The India deal is a fantastic deal, with tariffs on cars cut to 10 per cent, tariffs halved on whisky and gin, and £4.8 billion coming into our economy.”
Starmer’s criticism on Opposition Leader
Starmer lashed out at Opposition Leader Kemi Badenoch, accusing her and the Conservative Party of trying to undermine the agreement. “She wants to rip it up,” he said, pointing to Badenoch’s criticism of the Double Contribution Convention (DCC), a side agreement that prevents temporary workers from paying social security contributions in both countries.
In Parliament, Starmer also accused Badenoch of “accusing the Indian government of fake news” regarding the DCC and claimed she had failed to close the deal during her tenure as Trade Secretary. “The last government tried to do the India deal for eight years and failed we did that deal,” he said. “She must be the only former Trade Minister who is against all trade deals that boost our economy.”
The Conservative Party has slammed the DCC as unfair, arguing that it creates a two-tier tax system benefiting Indian workers. However, UK and Indian officials clarified that the exemption is reciprocal and benefits British workers posted in India as well.
According to the UK’s Department for Business and Trade (DBT), the FTA finalised on May 6 is projected to add £25.5 billion annually to the current UK-India trade, which stands at £41 billion. Key highlights of the deal include halving of Scotch whisky tariffs from 150% to 75% with further reductions to 40% and increased automotive quotas for British manufacturers. The agreement is currently being prepared in draft form for formal ratification by Parliament before it comes into effect.
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