£1bn UK-India trade deals will create 6,000 UK jobs, says PM

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The prime minister has announced new trade and investment deals with India worth £1bn.

It includes more than £533m of new investment from India into the UK, which is expected to create about 6,000 jobs.

Downing Street said the new partnership would “pave the way” for a future UK-India Free Trade Agreement.

“The economic links between our countries make our people stronger and safer,” said Mr Johnson.

The deal, announced ahead of a virtual meeting with India’s Prime Minister Narendra Modi, includes a £240m investment by the Serum Institute of India, which will support clinical trials, research and possibly the manufacturing of vaccines.

Serum has already started phase one trials in the UK of a one-dose nasal vaccine for coronavirus, in partnership with Codagenix.

Indian investment deals will create 1,000 new UK jobs each at health and tech firms Infosys, HCL Technologies and Mphasis.

Some 667 UK jobs will be created at Q-Rich Creations, 500 jobs at Wipro and 465 at 12 Agro.

“Each and every one of the more than 6,500 jobs we have announced today will help families and communities build back from coronavirus and boost the British and Indian economies,” said Mr Johnson.

‘Tip of an iceberg’
Trade Secretary Liz Truss told the BBC that the jobs would be created “within the next year or so”.

She said those commitments were “very different” from a free-trade deal, which the two governments will start negotiating on this autumn. Discussions will include lowering tariff barriers and new agreements on “digital and data”.

The announcement on 6,000 jobs “is really the tip of an iceberg” Ms Truss said.

Trade between the UK and India is worth about £23bn per year, and the government hopes to double that by 2030.

“What we need to do is get the huge tariffs removed on products like whisky, which is over 100%; cars, which is over 100% – that is where the real opportunities lie for us,” she said.

The do that, the UK is likely to have to relax immigration rules between India and the UK, Ms Truss added.

“We’ve already made significant steps in improving the immigration regime with the post-study work visa. We’ve seen a massive rise in Indian students coming to the UK.”

“Business mobility is a key part of trade. Particularly as the UK and India are both very strong in services, you need to make sure you’re able to get your professionals over to the country,” Ms Truss added.

Agencies

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