New analysis published today [Thursday 24 July] shows the landmark agreement will deliver a £50m boost to the local economy
NEW figures show trade deal with India will deliver £50 million for Northern Ireland's economy as part of the Plan for Change
Advanced manufacturing and engineering, whiskey producers and services and technology sectors set to benefit from growth following a reduction or near elimination of tariffs
Comes as Prime Minister and Trade Secretary welcome Prime Minister Modi and Commerce Minister to UK for signing of most comprehensive deal India has ever agreed
Businesses and workers in Northern Ireland are set to benefit from the UK's trade deal with India, as new analysis published today [Thursday 24 July] shows the landmark agreement will deliver a £50m boost to the local economy as part of the Plan for Change.
The Prime Minister will meet his counterpart Narendra Modi this morning for the trade deal signing as Business and Trade Secretary Jonathan Reynolds and Commerce Minister Piyush Goyal put pen to paper on the landmark agreement. It comes as a series of investment and export wins have been confirmed by UK and Indian businesses, representing an overall boost of nearly £6 billion and creating over 2,200 jobs.
India is a growing market for Northern Ireland businesses, 143 of which exported a total of £65 million in goods there last year- this could grow even more thanks to lower tariffs, fewer barriers to trade, and easier customs.
Advanced manufacturing and engineering - which represent approximately 30 per cent of employment in Northern Ireland - will benefit from removal or reduction of tariffs.
Northern Ireland's medical technology sector will benefit from tariffs on a range of medical devices, between 8.25% to 13.75% being eliminated or halved within ten years.
Duties on Irish whiskey will immediately fall from 150% to 75%, dropping further to 40% over ten years. Producers will also be able to use Irish barley or neutral grain spirit and bottle products in transit to India, maximising capability to capitalise on tariff reductions.
Secretary of State for Northern Ireland, Hilary Benn, said:
This is a landmark deal that will bring real benefits for businesses and workers in Northern Ireland.
Northern Ireland's advanced manufacturing, engineering, and medical technology sectors will see tariffs eliminated or significantly reduced, while Irish whiskey producers will benefit from substantial cuts in duties allowing for increased trade with India.
This agreement will help further unlock the huge potential for growth across Northern Ireland, including its thriving services and technology sectors.
Business and Trade Secretary Jonathan Reynolds said:
The millions brought to Northern Ireland each year from the deal we've signed with India today will be keenly felt across local communities, whether that's higher wages for workers, more choice for shoppers, or increased overseas sales for businesses.
This government is proving time and again that we can deliver on our mission to grow the economy, put more money in pockets and boost living standards under our Plan for Change.
Philip McKee, Sales Manager at Biopanda, a Belfast-based medtech manufacturer which exports in vitro test kits for clinical laboratories, veterinary practice, and food safety laboratories, said:
Biopanda have been supplying a range of diagnostic products to the Indian market throughout the past ten years. We value the business we have done already throughout India and with the introduction of the UK-India FTA this should benefit in increased trade with the removal of export barriers.
This will hopefully increase the market access, allowing our distributors throughout India to provide a larger range of our highly accurate clinical diagnostic products at a lower price to the consumer.
Workers in Northern Ireland will enjoy an uplift in pay as UK wages grow by a total £2.2 billion each year, and could also see cheaper prices and more choice on clothes, shoes, and food products. The UK already imports £11 billion in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper to buy their best products.
For businesses in Northern Ireland this could mean potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods.
India's trade weighted average tariff will drop from 15% to 3% which means Northern Ireland companies selling products to India from whiskey, and soft drinks to cosmetics and medical devices will find it easier to sell to the Indian market. It gives the UK an advantage over international competitors in reaching the Indian market, forecast to have over a quarter of a billion high income consumers by 2050.
Aligned with the UK's recent Industrial and Trade Strategies, the deal will support the sectors which drive the most growth for the economy. In Northern Ireland, sectors such as agriculture and food, advanced manufacturing and engineering, and the services and technology sectors are expected to benefit substantially.
Notes
- The government will prepare for the trade agreement to be ratified by Parliament so businesses can begin to use it.
