Resham Kotecha: This trade deal with India is a defining moment for our great nations

Resham Kotecha is the Director of the Conservative Friends of India.

The UK and India have just taken a historic step forward. Yesterday, Sir Keir Starmer and Narendra Modi signed a landmark UK–India Free Trade Agreement – a deal that is set to shape not just our economies, but the future of one of the most important bilateral relationships of this century.

This agreement will deliver £4.8 billion in additional annual growth to the UK economy, boost wages by £2.2 billion a year, and double trade to £120 billion by 2030.

These are big numbers – but the real story is what they mean for people. Lower tariffs on everyday goods, new jobs across the UK, and exciting opportunities for businesses to reach new markets.

One of the biggest breakthroughs? For the first time ever, British-made electric and luxury vehicles will enter India at just ten per cent duty, down from over 100 per cent today. This is a game-changer for British manufacturers and a big step towards India’s ambition of becoming a global leader in green transport.

Add to that slashed tariffs on Scotch whisky, new access for British service providers, and commitments to digital trade, and it’s clear: this is a deal with real, tangible benefits; a Conservative legacy, brought to life

It’s worth remembering – this moment didn’t happen overnight. The previous Conservative Government laid the groundwork for this success with the Enhanced Trade Partnership in 2021 and by launching formal negotiations in January 2022. By the time the general election was announced, those talks were already well advanced; the current Government has built on that progress, and today, we see the result of years of hard work from both nations.

Of course, no trade deal comes without challenges. As Kemi Badenoch has pointed out, when she was the Trade Secretary she refused to concede ground on a relaxing of migration rules, a lack of protection for key industries such as ceramics and aluminium, and tax refunds for Indians not available to us.

These decisions have sparked debate, especially at a time when businesses face additional pressures and voters are focused on migration. The Government argues these were necessary trade-offs to secure a deal of this magnitude – and that the long-term gains will outweigh short-term concerns.

This is not the end point – it’s a milestone. There is so much more we can do together: deepening cooperation on technology, education, fintech, green energy, and defence, creating jobs and security for both nations. India is the fastest-growing major economy in the world and a vital partner in shaping a stable, democratic global order. Strengthening our ties is not just good economics, it’s good strategy.

At Conservative Friends of India, we’ll keep championing these opportunities and making sure this deal delivers for businesses and communities across the UK. We are proud to be the largest affiliated group within the Conservative Party, committed since day one to building a relationship between the UK and India that is not only historic, but defining for generations to come.

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