India-UK trade deal set to deliver £80 million boost to Welsh economy
India-UK trade deal set to deliver £80 million boost to Welsh economy
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A landmark trade agreement between the UK and India is set to inject £80 million annually into the Welsh economy, with key sectors including food and drink, renewable energy, and the creative industries expected to benefit.
The deal, signed today during a high-profile visit by Indian Prime Minister Narendra Modi and Commerce Minister Piyush Goyal to the UK, is being hailed as the most comprehensive trade agreement India has ever signed.
According to new government analysis, the deal will create significant opportunities for Welsh businesses and workers, aligning with the UK’s broader Plan for Change. It is also part of the UK’s ongoing push to strengthen trade ties with global partners post-Brexit.
One of the headline wins for Wales is the elimination of a 33% tariff on Welsh lamb, allowing duty-free access to Indian markets from day one. With 256 Welsh businesses already exporting £226 million worth of goods to India last year, officials believe there is strong potential for further growth due to streamlined customs processes and reduced trade barriers.
Secretary of State for Wales Jo Stevens welcomed the development, saying: “This is a landmark deal that is set to boost Wales’s economy by £80 million annually.
“Key industries in Wales, such as the renewable energy sector, the creative industries and food and drink producers will see immediate benefits. On many goods tariffs will be reduced or eliminated. And Welsh businesses will also benefit from access to India’s huge procurement market with increased protections so they can confidently export goods and services.
“This agreement further unlocks the immense potential for growth across Wales’s key industries.”
The renewable energy sector, which employs over 15,000 people in Wales and generates around £3.3 billion in revenue, stands to gain from reduced tariffs and access to India’s public procurement market. Additionally, the Welsh creative sector is expected to benefit from stronger copyright protections under the new trade framework.
Business and Trade Secretary Jonathan Reynolds also highlighted the broader economic benefits of the deal, saying: “The millions brought to Wales 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.”
Beyond Wales, the UK as a whole expects to see wages rise by £2.2 billion annually as a result of the deal. Consumers may also benefit from lower prices and more variety on products such as clothes, shoes, and food, as liberalised tariffs make Indian imports more affordable.
India is already a significant trading partner, with £11 billion worth of goods imported into the UK annually. The newly signed agreement is expected to deepen this relationship, offering mutual economic benefits and a stronger trade bridge between the two nations.
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