Keir Starmer announces trade deal with major country after Boris Johnson's failure

Keir Starmer has agreed a major trade agreement with India - three years after failed to deliver on the promise of a deal.

The government said the new trade deal will slash Indian tariffs on key UK products such as whisky, gin, cosmetics and medical devices. The Department for Business and Trade said the cut in tariffs will be worth over £400million when the deal comes into force - doubling to £900million after 10 years. It said shoppers could see cheaper prices and more choices on clothing and footwear.

Boris Johnson failed in his promise to deliver the agreement - seen as a key prize - with Narendra Modi's government "by Diwali" in 2022 and one was never struck under his successors and . Key sticking points in more than a dozen round of negotiations included high tariffs on Scotch whisky in India and visa rules for Indian students and professionals.

Announcing the deal today, Mr Starmer said: “We are now in a new era for trade and the economy. That means going further and faster to strengthen the UK’s economy, putting more money in working people’s pockets." He added: “Through this government’s stable and pragmatic leadership, the UK has become an attractive place to do business.

"Today we have agreed a landmark deal with India - one of the fastest growing economies in the , which will grow the economy and deliver for British people and business. Strengthening our alliances and reducing trade barriers with economies around the world is part of our Plan for Change to deliver a stronger and more secure economy here at home.”

India's PM Mr Modi said his country had concluded an "ambitious and mutually beneficial" free trade agreement with the UK. In a post on X, he said: "Delighted to speak with my friend PM . In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial free trade agreement, along with a double contribution convention.

"These landmark agreements will further deepen our comprehensive strategic partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies. I look forward to welcoming PM Starmer to India soon."

The chief executive of the pro-EU Best for Britain campaign group, Naomi Smith, welcomed the deal unveiled by the government on Tuesday.

But she warned: "This deal is no substitute for removing technical barriers to trade with our largest and closest market which can deliver 20 times the economic boost and cut supermarket prices for consumers. The government is right to pursue better trade terms with other nations but our polling shows voters expect their priority to be securing a common sense deal with the EU.”

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