US EditionIndia trade deal could undercut UK workers, opposition parties say
- The UK and India agreed on a landmark free trade deal in early May 2025, signing in New Delhi to reduce tariffs and extend a National Insurance exemption for some Indian workers in the UK.
- The deal reflects over three years of negotiations aimed at boosting bilateral trade with India’s 1.4 billion people, but critics argue it introduces a 'two-tier tax system' affecting UK workers.
- Major tariff cuts include reducing duties on whisky and gin from 150% to 75%, lowering automotive tariffs to 10%, and under the agreement’s ‘double contribution convention,’ Indian professionals on temporary UK assignments will be exempt from paying UK social security taxes for up to three years.
- Prime Minister Narendra Modi described the agreement as a landmark achievement expected to boost economic activity, foreign investment, and employment opportunities, while critics cautioned that it could disadvantage British workers and lead to financial losses for the Treasury.
- The agreement could add nearly £5 billion annually to the UK economy, create jobs, and lower consumer prices, but political debate continues amid concerns about worker competitiveness and fairness of tax exemptions.
28 Articles
28 Articles
Farage Slams Labour for ‘Betraying British Workers’ in India Trade Deal.
PULSE POINTS:What Happened: Nigel Farage has slammed the new trade deal between Britain and India, accusing the ruling Labour Party of betraying British workers. Who’s Involved: Prime Minister Sir Keir Starmer, Reform Party leader Nigel Farage, former Home Secretary Suella Braverman, and John O’Connell of the TaxPayers’ Alliance (TPA). Where & When: The trade deal was agreed upon in London and Delhi on May 6. Key Quote: Nigel Farage stated, “Thi…
UK PM Keir hits back at Oppn attacks over India FTA tax clause
London: British Prime Minister Keir Starmer on Wednesday came out fighting against Opposition criticism over a double taxation clause in the Free Trade Agreement (FTA) with India, designed to prevent temporary workers paying in social security contributions in both countries. The Double Contribution Convention, one of India’s key asks in the trade deal negotiations concluded on Tuesday, means Indian workers seconded to Britain will not have to p…
News24 | UK dismisses idea that British workers being 'sold out' in India trade deal
Britain’s trade minister on Wednesday defended a contentious tax break for some Indian workers agreed as part of a landmark free trade agreement with India, saying the idea that he had undercut British workers was “absolute nonsense”.
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