India-UK sign comprehensive economic and trade agreement; 60,000 Indians to get jobs in Britain

NEW DELHI: India and UK signed a comprehensive economic and trade agreement that will provide more opportunities and relaxation of regulations for Indian professionals, including Malayalees, seeking employment in the UK. It will benefit more than 60,000 Indian professionals annually.

The tax imposed on many products from India will be eliminated. These include fish products, spices and cash crops; major export options from Kerala. It will take about a year for the deal to come into effect as it needs to be approved by the British Parliament.

The agreement was signed by Union Minister for Commerce and Industry Piyush Goyal and UK Secretary of State for Business and Trade, Jonathan Reynolds in the presence of UK Prime Minister Keir Starmer and Prime Minister Narendra Modi.

The UK market will be opened to Indian textiles, footwear, gems and jewellery, engineering, agricultural products and processed food products. In return, India will also reduce tariffs on British products. The two countries are expected to increase trade by 2.9 lakh crore rupees.

Duty-free items that will benefit Kerala (current duty tax in bracket)

Tea, coffee, vegetables, grains, oils (10%), fruits (20%), spices (8%), oilseeds (8%), animal products (up to 20%), marine products including shrimp (20%), processed food (70%), plastic/rubber (6%), garments (12%)

# Whiskey tax will be reduced from 150 per cent to 75 per cent and 40 per cent within ten years.

# Tax on electric vehicles will be reduced from 110 per cent to 10 per cent.

# Tax on chocolate, biscuits, beverages, medical devices, cosmetics and aircraft components will also be reduced from 15 per cent to 3 per cent.