New Investment Deals with India To Boost the Economy and Employment

3 min read | May 05, 2021 03:10 AM AEST | By Suhita Poddar

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New Investment Deals with India To Boost the Economy and Employment — Image source: OSORIOartist,Shutterstock

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Summary

The £1-billion UK-India trade deal announced to generate 6,500 UK jobs will mainly focus on the healthcare and technology sectors.

The partnership is expected to be a steppingstone for a future FTA between the two nations.

These investments will form a part of an Enhanced Trade Partnership between the two nations by 2030.

British PM Boris Johnson has announced trade and investment deals with India on Monday evening, ahead of a virtual meeting with his Indian counterpart Narendra Modi later today. The deal, which is worth £1 billion, includes fresh investments in the UK from India, predominantly in the sectors of healthcare and technology. The Indian investment is likely to create over 6.5k new jobs in the country. The PM office has said that the partnership is expected to be a steppingstone for a future FTA between the two nations.

These investments will form a part of an Enhanced Trade Partnership (ETP) between the two nations that the two leaders will formally sign off during their talks. The agreement is likely to become two fold of the value of UK-India trade by the year 2030. As per official statistics, the current annual trade between the two nations is about £23 billion.

Moreover, the ETP shall create more opportunities for British firms in India in the sectors like food and drink, life sciences, and services.

Also Read: PM Boris Johnson To Visit India In January In A Bid to Boost Jobs and Investment

Lower tariff and NTBs

The partnership is expected to lower non-tariff barriers (NTBs) on British firms exporting fruits and medical devices to India. Existing tariff rates on British products entering India, such as whisky (150 per cent) and automotive (125 per cent), can also go down.

Investment by the Serum Institute of India

The Serum Institute of India In partnership with Codagenix is already undertaking phase one trials in Britain for a nasal vaccine to cure coronavirus. As part of the new UK-India trade deal, Serum will be investing £240 million to support the ongoing clinical trials and undertake further research to explore the possibility of vaccine production.

New jobs

Around 1,000 jobs will be created at Infosys, HCL Technologies and Mphasis, 667 jobs will be generated at Q-Rich Creations, 500 at Wipro, and 465 jobs will be created at 12 Agro. Johnson said that these new jobs shall help communities build back from the pandemic crisis and provide an economic boost to Britain as well as India.

Besides, British companies have bagged export orders of over £446 million with India. These deals are likely to generate more than 400 jobs in Britain.

Also Read: Roadmap to Recovery: Prime Minister Boris Johnson Unveils the 4-Step Plan

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