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India trade deal could undercut UK workers, opposition parties say

  • The UK government announced a landmark free trade agreement with India in May 2025, aiming to reduce tariffs and boost trade between the two countries.
  • After three years of post-Brexit negotiations, the deal includes tariff cuts and a double contribution convention exempting certain Indian workers in the UK from National Insurance for three years.
  • The agreement will slash tariffs on exports like whisky and cars while Indian imports of textiles and footwear will face reduced or no tariffs, benefiting bilateral trade valued at over £25 billion annually by 2040.
  • Opposition parties criticize the deal for creating a two-tier tax system that exempts some Indian workers from UK contributions despite recent National Insurance hikes for British workers, calling it unfair and risky to UK jobs and wages.
  • Supporters argue the deal will increase British business growth by £4.8 billion annually, raise wages by over £2 billion, create jobs, and strengthen UK economic ties with India’s 1.4 billion population.
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The Telegraph broke the news in London, United Kingdom on Tuesday, May 6, 2025.
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