Thu May 08 14:06:55 UTC 2025: ## UK Defends Controversial India Trade Deal Amidst Criticism

**London, May 8, 2025** – The UK government is staunchly defending its newly announced free trade agreement (FTA) with India, facing backlash over concerns about immigration and the perceived imbalance in tariff reductions. The deal, signed Tuesday by Prime Ministers Narendra Modi and Keir Starmer, is touted by the UK as its largest with a single partner since Brexit.

The government released an infographic addressing criticism, emphasizing that India will reduce tariffs on £400 million worth of British goods, including gin, whisky, and under a quota system, UK car exports. They countered claims that the deal primarily benefits India.

Concerns about immigration have also been raised, with critics arguing the agreement could lead to cheaper labor from India. The government insists this is not the case, stating that employers will still bear the costs of visas, national insurance contributions, and health surcharges. Indian High Commissioner Vikram Doraiswami further clarified that the FTA was “never about visas.”

The Conservative Party, currently in opposition, has been highly critical, with former Trade Secretary Kemi Badenoch accusing the government of creating a “two-tier” tax system. However, some within the party have expressed support for the deal. Trade Minister Jonathan Reynolds defended the agreement, highlighting similar clauses in existing trade deals with countries like the US, Canada, and Japan. He emphasized that the social security exemption for workers applies equally to both British and Indian citizens. Prime Minister Starmer dismissed the criticism as “incoherent nonsense.”

The Indian government, meanwhile, described the national insurance exemption as a “huge win.” The UK is expected to announce another trade deal with the US later today.

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