The UK and India have announced one of the “biggest and most economically significant” bilateral trade agreements the UK has signed since Brexit, following years of discussions. This marks a significant milestone for the UK life sciences industry in particular, offering substantial opportunities for growth and collaboration.
This agreement comes at a time as UK businesses increasingly seek to take advantage of significant economic Indian economic growth, and is estimated to boost Britain’s GDP by 0.1% by 2040.
Reduced trade barriers on wide range of goods
The deal will reduce costs on UK exports of various goods to India, such as medical technology devices and advanced machinery. An estimated 66% of UK exports to India will be eligible for tariff-free entry. Likewise, the deal will give India greater access to UK consumers in markets such as clothing, footwear, and food.
Going forward, businesses will also benefit from reduced red tape in the form of paperless trade, faster processing at customs (both the UK and India have agreed to release goods as swiftly as possible and seeking to do so within 48 hours) and agreements to facilitate online systems.
Establishment of an Innovation Working Group
The two countries plan to establish an Innovation Working Group to enhance collaboration, research, and development. The dedicated forum will bring together academia and industry representatives from both countries to identify and advance innovation priorities. Under this initiative, the countries will jointly monitor regulatory regimes for emerging technologies to reduce unintended barriers to trade and ensure that regulatory frameworks remain fit for purpose as technologies evolve.
Enhanced intellectual property protection
The deal builds upon existing international IP commitments (such as the WTO Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement), and will cover copyright, designs, trade marks, geographical indications, patents, and trade secrets, as well as enforcement. The UK Government has said that the deal will lead to improved patent procedures in India and enhanced transparency and legal certainty in the patent system.
