Businesses and workers in the East Midlands are set to benefit from the UK’s trade deal with India, according to the Government, as new analysis shows the agreement will deliver a £130m boost for the local economy.
Both Prime Ministers met yesterday morning for the signing of the UK-India trade deal, expected to bring a £4.8bn increase to UK GDP each year.
740 East Midlands businesses exported goods worth £130m to India last year, which could grow under the new deal. The region’s high value manufacturing and automation sectors, for example, could see a boost thanks to lower tariffs on advanced manufacturing goods and on importing Indian textiles.
Business and Trade Secretary Jonathan Reynolds said: “The millions brought to the East Midlands 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.”
The UK already imports £11bn in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper. For businesses in the East Midlands, this could mean potential savings in the region’s established manufacturing sectors, including machinery, equipment and automotive components.
India’s trade weighted average tariff will drop from 15% to 3% which means companies in the East Midlands selling products such as luxury knitwear to India will find it easier to sell to the Indian market.
Aligned with the UK’s recent Industrial and Trade Strategies, the Government says the deal will support the sectors which drive the most growth for the economy – such as precision engineering and high-value manufacturing in the East Midlands – will offer significant opportunities for rail manufacturing – for which the East Midlands is globally recognised – and unlock opportunities for transport experts in the region.
Established in 1784 in Lea Mills, Derbyshire, John Smedley Ltd is a manufacturer and retailer of luxury knitwear who will benefit from liberalised tariffs on imports of Indian textiles.
Bill Leach, global sales director, John Smedley Ltd, said: “India is one of the fastest growing luxury markets in the world, and we are very excited about the UK- India Free Trade Agreement coming to fruition.
“John Smedley knitwear is already sold in over 50 countries around the world, and now that the FTA has been signed, we shall very much look forward to ensuring that an ever-increasing number of discerning luxury consumers in India will enjoy greater access to The World’s Finest Knitwear.”
