The newly signed UK-India trade agreement is set to deliver a £50 million boost to Northern Ireland’s economy, according to analysis released on 24 July. This development is part of the UK’s broader Plan for Change and follows the formal signing of the deal by Prime Ministers Rishi Sunak and Narendra Modi, alongside UK Business and Trade Secretary Jonathan Reynolds and India’s Commerce Minister Piyush Goyal.
The agreement is expected to strengthen trade links by reducing or eliminating tariffs, making India a more accessible and profitable market for Northern Ireland exporters. Last year, 143 Northern Irish businesses exported £65 million worth of goods to India, and this figure is projected to grow under the new trade conditions.
Advanced manufacturing and engineering, which account for about 30% of employment in Northern Ireland, are set to benefit significantly from tariff cuts. Medical technology companies will also gain from reductions in duties on medical devices, which currently range between 8.25% and 13.75%. These tariffs will either be halved or eliminated within ten years.
The region’s whiskey producers stand to benefit from a phased reduction in Indian import duties. The tariff on Irish whiskey will drop from 150% to 75% immediately and decline further to 40% over a decade. Producers will also gain more flexibility in sourcing ingredients and bottling processes, increasing their competitiveness in the Indian market.
Beyond exports, the agreement is expected to benefit consumers and workers in Northern Ireland. Tariff reductions on Indian imports are likely to lower prices and expand choices for items such as food, shoes, and clothing. UK wage growth is also expected to increase by £2.2 billion annually, partly benefiting Northern Ireland.
Tariff reductions will improve the cost-efficiency of importing raw materials and components for local industries, particularly in advanced manufacturing and luxury goods. With India’s trade-weighted average tariff set to drop from 15% to 3%, Northern Irish companies exporting products such as soft drinks, cosmetics, and medical devices will find it easier to enter the Indian market.
The deal aligns with the UK’s broader industrial and trade strategies, targeting sectors with high economic growth potential. In Northern Ireland, key sectors expected to gain from the agreement include agriculture, food, advanced manufacturing, engineering, services, and technology.
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