In UK Parliament, PM Keir Starmer Praises "Historic, Fantastic" Trade Deal With India

British Prime Minister Keir Starmer on Wednesday hailed the “fantastic” Free Trade Agreement (FTA) clinched with India as he came down heavily on the Opposition Conservative Party for wanting to “rip it up”.

During the weekly Prime Minister's Questions (PMQs) session in the House of Commons, Starmer pointed to the Labour government's success in completing the FTA negotiations with India last week after the Tories failed to strike a deal while in government over the past eight years.

Starmer locked horns with opposition leader Kemi Badenoch over the Labour government's employment and business record.

“Over the past week, we have secured a historic trade deal with India and a landmark agreement with the United States, protecting and creating British jobs, slashing tariffs and driving economic growth,” said Starmer. “The India deal is a fantastic deal, with tariffs on cars cut to 10 per cent, tariffs halved on whisky and gin, and 4.8 billion pounds coming into our economy. What does she [Badenoch] say she would do with the India deal? She wants to rip it up,” he said.

The UK PM pointed to Badenoch's statements last week, which branded as “fake news” Indian assertions that the Double Contribution Convention (DCC) agreed to prevent temporary foreign workers duplicating social security contributions in both countries had been on the table during negotiations with the previous government.

“She was even reduced last week to accusing the Indian government of fake news — no wonder she did so badly as a Trade Secretary. The project for the Conservatives is over. They are sliding into oblivion; they are a dead party walking,” said Starmer.

The Tories have attacked the DCC, agreed alongside the FTA, as creating a two-tier tax system that would allow Indian workers to save tax for the first three years.

However, the UK government and Indian officials have pointed out that not only is the exemption reciprocal, benefiting British workers in India too, but it had been part of India's discussions with the previous Tory government when Badenoch was leading the negotiations as then UK trade secretary.

“The last government tried to do the India deal for, I think, eight years and failed — we did that deal… This former Trade Minister must be the only former Trade Minister who is against all trade deals that boost our economy. She says she is against the India deal, even though it contains the same provisions that she put on the table,” he added.

According to the UK's Department for Business and Trade (DBT), the FTA agreed on May 6 is expected to add an extra 25.5 billion pounds annually in the long run to the current two-way trade of 41 billion pounds.

It has highlighted a cut in Scotch whisky tariffs, from 150 per cent down to half and then eventually even lower to 40 per cent, and automotive quotas among the big wins for British business. The deal is now in the process of being finalised in draft form for Parliament approval before it can come into force.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)