Britain and India have struck a free trade deal hailed by Sir Keir Starmer as paving the way for cheaper prices in UK shops and boosting exports.The agreement, which aims to increase bilateral annual trade by £25 billion by 2040, will see Indian tariffs “slashed” on a range of goods, with the UK also reducing some of its import levies.India has been pushing for a relaxation of visa rules as part of the deal to make it easier for its companies to transfer staff to work in the UK.The deal detailed “clear and agreed routes” by which these work transfers for business people and other professionals could happen between India and the UK, and vice versa.A cap will be applied for some groups of workers including chefs and musicians.The UK government said that the deal meant that UK’s points-based immigration system would not be affected.A “double contribution convention” will mean Indian workers will not pay National Insurance contributions in both countries for the first three years of a transfer to the UK, and vice versa.
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NewsTranscript
00:00Well this is a historic day for the United Kingdom and for India because this is the biggest trade deal that we the UK have done since we left the EU and it's the most ambitious trade deal that India has ever done and this will be measured in billions of pounds into our economy and jobs across the whole of the United Kingdom.
00:24So it is a really important significant day and look it's been promised many times over the last eight years Prime Minister Modi and I decided in Brazil last year that we would move at pace in relation to these negotiations.
00:39We've done that in a in a serious way in a pragmatic way and we're able to show that that's what delivers results.
00:48So I'm really pleased for working people across the country who will feel the benefits of this of course at an increasingly uncertain time in terms of trade and the economy across the world.
00:59So this is a very significant step and I'm very pleased that we've got this far with this really significant trade agreement.
01:06There's always give and take in these things. Where did you land on the number of visas that you're going to grant to Indian nationals? Will it affect net migration?
01:13Look there were tough negotiations on both sides as you would expect but because we were serious and pragmatic and providing the leadership to our negotiating teams we were able to resolve the difficulties that have held this up for the best part of eight years.
01:30And my sort of approach to the negotiations, my instruction to the team was we will always act in our national interest and make sure that this is a deal that works for Britain and that's what we've been able to produce, that's what we're able to deliver today.
01:47Will India have to pay the same sort of carbon taxes on products like cement and steel that other countries have to pay to import into this country?
01:58Well we have negotiated the best set of arrangements but I've been absolutely mindful of the key sectors that we have in this country and how we improve the economic circumstances for them.
02:11We have brilliance across the United Kingdom which will now be showcased and drive our economy in what we can now do with India.
02:18So we've negotiated hard on both sides but I think looking at the outcome here what you will see is that these are two countries that have come together historically today and what we've been able to show is that those British values of seriousness, pragmatic approaches have delivered the results for working people across the country.
02:40And finally Prime Minister, what are you saying to all those MPs and the First Minister of Wales who are worried about the direction of the government and in particular who want you to rethink your winter fuel payment policy, are you thinking about that again?
02:55Well we had a cabinet meeting on this discussion on this issue this morning.
03:00I was really clear that most Prime Ministers after a disappointing set of results like that would get in the warm bath of saying well it's the electoral cycle, it was close.
03:12I'm not going to do that.
03:13I'm not going to do that.
03:14I think it's really important that we indicate to voters that we get it.
03:18I think we need to explain the decisions that we've taken.
03:21You know we had to stop the chaos, we had to stabilise our economy and that's what we've done.
03:27What we now need to do, I think the message is that the change people voted for, the change we're delivering is important.
03:35We've got to turbo charge that now off the back of the decisions we've made but turbo charge the change so people can feel it in their everyday lives and that's what we're determined to do.