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Hindustan Times
13-05-2025
- Business
- Hindustan Times
Raj reversed: India-UK Free Trade Agreement
The UK's long-pending Diwali gift to India is finally here—an announcement that has sparked excitement across a nation of over a billion, even amid the shock of the Pahalgam terror attack and global tariff tensions. India and the UK concluded a landmark Free Trade Agreement (FTA) and Double Contribution Convention on May 6. This historic pact covers trade in goods, services, investment, mobility, intellectual property (IP), sustainability and indirectly impact some other actors and industries. Negotiations that lasted nearly three years, beginning in January 2022 were expected to be finalised long ago. The FTA aims to boost trade, investment, jobs, and innovation while strengthening the India-UK strategic partnership. UK Prime Minister Keir Starmer highlighted that the Labour government finalised the deal in under a year—a contrast to delays under the Conservatives—and called it a win for the working class. The deal is expected to increase UK-India trade by £25.5 billion, add £4.8 billion annually to the UK economy, and boost wages by £2.2 billion. The FTA removes tariffs on 99% of Indian goods entering the UK, making Indian exports like textiles, leather, marine products, toys, and auto parts more competitive. Following this milestone, India secured the UK's strongest commitments yet in services, opening doors for sectors like IT, finance, education, and health care. Professionals such as chefs, yoga instructors, and tech workers will find it easier to work in the UK. Indian workers in the UK will also be exempt from social security contributions for up to three years, helping them save more. The agreement also extends the Young Professionals Scheme and eases entry for Indian service professionals in fields like IT, finance, and law. The British Chambers of Commerce called the deal a major boost, especially for UK sectors like manufacturing, services, and tech. UK whisky and car manufacturers stand to benefit from lower tariffs. Economically, the deal is expected to raise bilateral trade from £41 billion last year to £66 billion by 2040. UK exports—such as Scotch whisky, gin, and spirits—will see steep tariff cuts. The 150% tariff on Scotch will be halved to 75% immediately and reduced further to 40% over ten years. Car import duties into India will fall from 100% to 10% under a quota system. In return, India will gain greater market access in the UK for products like textiles, food items, gems, jewellery, and pharmaceuticals. Signed by the two commonwealth nations, Double Contribution Convention is a unique addition. It recognises businesses operating in both countries and simplifies cross-border social security contributions—helping cut costs and encouraging India-UK startup partnerships. While issues like agricultural access, patents, and data privacy sparked debate during talks, compromises were reached. India insisted on digital sovereignty, and the UK accepted limited access for some goods. The FTA is expected to generate one million jobs in India over the next decade and boost the GDP in both nations. In the fiscal year 2023–24, bilateral trade between India and UK reached approximately $21.34 billion, marking a steady rise from $20.36 billion the previous year. Of this, India exported goods worth around $14.4 billion to the UK, while its imports from the UK amounted $6.75 billion. Although India and the UK are not top trade partners, the potential is huge. Since Independence, India has diversified its defence imports, which were once dominated by the UK. The main challenges in the India-UK trade ties include high tariffs on sectors like automobiles and alcohol, regulatory barriers, differences in data privacy laws, agricultural market access, and concerns over labour and environmental standards. The FTA has addressed all of these. But one concern the FTA does not yet address is Britain's Carbon Border Adjustment Mechanism (CBAM), which remains a point of anxiety. It's important to note this is a FTA—not a Preferential Trade Agreement or Comprehensive Economic Partnership Agreement—highlighting the depth and complexity of negotiations that included multiple rounds of discussions on sector-specific concerns. The FTA is set to impact several key sectors. In automobiles, British luxury cars like Jaguar and Rolls-Royce will become more affordable in India due to sharply reduced duties, while Indian exports of auto parts and engines to the UK will gain traction. In alcohol, Scotch whisky tariffs will fall from 150% to 75% immediately and to 40% in a decade, making UK brands more accessible in India. The education sector will benefit from relaxed regulations, smoother student and professional movement, and mutual recognition of qualifications. In high-tech and defense, the agreement supports joint ventures, R&D, and technology transfer. UK firms will get better access to Indian defense contracts, while Indian companies can benefit from British tech expertise. Overall, the FTA is expected to boost bilateral trade by £25.5 billion by 2040, with nearly all Indian exports entering the UK duty-free. This will create jobs in textiles, leather, engineering, IT, and more. FTA is a great step but now the game begins. The Labour party needs to have a fresh approach and encourage the venture capitalists to pump money and research and development facilities to contemplate making designing from India at a lower cost. The G20 inmates meet and table agendas at the bilaterals but their 2+2 dialogue is defence and diplomacy centric. The trade barriers between the two robust economies are now becoming fade following the FTA, India needs to bring quality to its products like medicines and spices--in order to retain the brand and make best out of the deal. This article is authored by Ayanangsha Maitra, journalist and fellow with Center of Geoeconomcis, Global South, United Arab Emirates.
Epoch Times
05-05-2025
- Health
- Epoch Times
Workless ‘Lost Generation' Suffering Mental Health Issues: Report
The British Chambers of Commerce (BCC) is warning of a workless 'lost generation,' caused partly by the number of young people suffering from poor mental health. The body is calling for immediate government action which it says is needed to help young people from generation Z, generally defined as those born between 1997–2012, to enter the workplace or education. 'Double Whammy' Shevaun Haviland, director general of the BCC, said: 'The UK's active workforce is rapidly ageing, while the number of young people who are not in employment, education or training is at its highest level for a decade. 'Generation Z face a double whammy of increasing barriers to entering the workforce, and reducing opportunities as the number of vacancies continues to fall. 'But research shows the longer we leave this pool of talent to drift away from the workplace the harder it becomes for them to engage.' The BCC, which represents a large number of smaller businesses, is calling on the government to spend more on mental health support and further education and for a more 'collaborative approach' across the various Whitehall departments. 'Rise of Anxiety' Related Stories 8/14/2024 4/9/2024 'One clear trend is the rise of anxiety particularly since the COVID-19 pandemic. Data from the Annual Population Survey show that prior to the pandemic, self-reported levels of anxiety in the population were relatively stable. Since 2019, however, the number of people reporting high levels of anxiety has surged and remained high, with 23 per cent of working-age adults reporting 'poor anxiety' in 2023,' authors for the former prime minister's organisation wrote. Mental health conditions are now the most commonly reason cited by people across all age groups who are out of work owing to long-term sickness, the report by the TBI notes. 'The reasons behind this shift remain unclear. It may reflect a rise in true prevalence, but other factors could also be at play – such as distorted financial incentives within the system, overdiagnosis or changing public attitudes and awareness around mental health. 'Whatever the cause, one thing is clear: the current trajectory is unsustainable,' the authors concluded. The study highlights a 168 percent reported increase in depression, anxiety, and stress among those aged 16–24 in the two decades ending in 2019, with a 42 percent rise seen across all age groups. It also notes a doubling in the prescribing of ADHD medication since 2018–2019, with the younger age group the main driver behind this increase. Surging Benefits Bill Claims for mental health conditions have fuelled a nationwide surge in benefits payments since the lockdown era, with an estimated 25 percent in income tax predicted to be used to fund sickness benefits by the end of this decade, unless the trajectory changes. An estimated 13.4 percent of all young people aged 16 to 24 were classed as NEET ('not in education, employment, or training') in October to December 2024, an increase of 1.3 percent compared with October to December 2023, according to the The precise figures are not reliable, because they are based on the statistics agency's labour market survey, which is hampered by low response rates, especially for younger age groups. Signage for the Department of Work and Pensions in Westminster, London, in an undated file photo. PA Almost half (46 percent) of those surveyed told The King's Trust researchers they have additional mental health issues or caring responsibilities owing to the lockdown era which meant they were out of work. More than half (52 percent), said the longer they were unemployed, the harder they were finding it to get work, while 45 percent said being out of work meant they had lost confidence in their skills. Youth Guarantee Scheme Last month, the government announced a series of welfare reforms, including sweeping cuts to disability benefits and an expansion of so-called 'back-to-work support,' which it said will help young people diagnosed with mental health problems to enter the workforce. The Department for Work and Pensions (DWP) announced a Youth Guarantee Scheme in November, aimed at giving all 18- to 21-year-olds access to training, an apprenticeship, or support to find work, as part of a broader strategy aimed at tackling worklessness and ill health in the wider population. Releasing its 'Young people have also been left behind with one in eight young people not in education, employment or training, and nine million adults lack the essential skills they need to get on in work.' The government proposes to set up eight youth 'trailblazer' areas across the country, allocating £45 million to identify those 'most at risk of falling out of education or employment and match them to opportunities for education, training or work,' with a further £40 million allocated to transform the Apprenticeship system. However, the BCC said in its report that there was a lack of clarity as to how the youth guarantee scheme will work in practice, and whether there will be sufficient funding to last the entire course of the next Parliament. 'Details of how this will be delivered, and the role of employers, are still unclear. While employers want to support the initiative, the rising cost of employment and the squeeze on training budgets could restrict their ability to participate.' The BCC noted that there is a 'lack of incentive' for small- and medium-sized businesses to take on young people, particularly those classed as NEET, because of the financial risk. 'Employers report that young people are more resource-intensive to train and employ, due to their increased need for pastoral care, and their higher staff turnover. Combined with the likelihood that NEETs may have additional needs such as Special Educational Needs (SEN) or mental health challenges, resource-stretched SMEs may feel unable to offer the support needed,' the authors said, adding that the role of government should be to 'derisk' this for businesses that take on and retain these young people.
Fibre2Fashion
22-04-2025
- Business
- Fibre2Fashion
Only 21% of UK SMEs report export growth in Q1 2025: BCC Survey
Only 21 per cent of small and medium-sized enterprises (SMEs) in UK reported increased export sales, while 27 per cent saw a decline and 53 per cent noted no change—highlighting that export growth among SME exporters remained subdued ahead of the introduction of US tariffs, according to a survey conducted by the British Chambers of Commerce (BCC). The outlook for advance orders was even bleaker, with just 20 per cent reporting growth, 28 per cent a drop, and 52 per cent seeing no shift. SME exporters are consistently more likely to report weaker export performance compared to pre-pandemic and pre-Brexit levels, as per BCC's Trade Confidence Outlook. In Q2 2018, only 14 per cent of SME exporters reported a decrease in overseas sales, however, in Q1 2025, it stands at 26 per cent. UK SME exporters are facing subdued export growth ahead of impending US tariffs, with only 21 per cent reporting increased overseas sales in Q1 2025, according to the BCC. Manufacturers fared slightly better than services, though services showed greater stability. Domestic demand remains stronger. The BCC urges enhanced export support in the upcoming trade strategy to boost long-term export success. By contrast, domestic demand for SME exporters remains consistently more buoyant, with 28 per cent reporting an increase in domestic sales in Q1 2025, against 21 per cent for overseas sales. SME manufacturers are more likely to report increased overseas sales, with 24 per cent indicating a rise in exports, compared to just 19 per cent of SME services exporters. However, the services sector appears more stable, with 24 per cent reporting a decrease and 57 per cent seeing no change, while 31 per cent of manufacturers experienced a decline and 45 per cent reported no change, according to the data. The picture for advance export orders showed no improvement, with only 22 per cent of SME manufacturers and 19 per cent of SME service exporters reporting an increase. 'This data does not paint a rosy picture for exports ahead of the imposition of US tariffs. Although it is inevitable that uncertainty about US actions may well have influenced the SME export trade at the start of the year. It is also likely that manufacturers fared better than services in Q1 as US customers looked to stock up on goods ahead of tariffs coming in,' said William Bain, head of trade policy at the BCC . 'We believe the government has adopted the right strategy for tariffs of negotiation not retaliation, and the signals from the White House are there is a deal to be done. It is also right to pursue a closer trading relationship with the EU and to point businesses towards the burgeoning opportunities in the Indo-Pacific region,' added Bain. 'But the upcoming trade strategy must do more to provide firms with support around exports, including access to finance. Over 40 per cent of chamber members export due to the framework of support we place around them. This level of advice, training and guidance needs to be replicated across the land.' 'The next few years will be pivotal for the UK's export success for decades to come. It is crucial the Trade Strategy puts us in the best possible place to deal with the challenges and take full advantage of the opportunities,' said Bain. This data is based on a survey of over 1,800 UK SME exporters. Fibre2Fashion News Desk (SG)
Yahoo
31-03-2025
- Business
- Yahoo
Miliband urged to scrap windfall tax to avoid mass job losses in North Sea
Ed Miliband has been urged to scrap the windfall tax and reopen the North Sea or risk wholesale job losses that could jeopardise net zero. The North Sea Transition Task Force, a private sector initiative overseen by the British Chambers of Commerce (BCC), has told the energy secretary that the taxes and exploration bans imposed on the oil and gas industry have accelerated its decline to the point where it will be largely gone before renewables can replace it. It follows new data showing that about 180 of the UK's remaining 280 active oil and gas fields will be forced to close down by 2030. That would mean a huge increase in reliance on imports from places like the US, as well as the loss of thousands of jobs in the industry and its supply chain. 'Companies are already giving up on the North Sea… confidence is at its lowest level for two decades and investment is declining at a faster rate than anticipated,' the North Sea Transition Task Force said in a report published on Monday. 'Simply put, there is a risk that oil and gas production will decline faster than anticipated, while wind and other renewable projects take longer to get established. If that gap is allowed to open, there will not be a viable industry left to transition to the renewable future.' Allowing Britain's oil and gas industry to wither would see the loss of valuable skills and knowledge needed for the transition to renewable energy, the report added. Philip Rycroft, a former permanent secretary who authored the report, said it was clear the Government needed to rethink its policy or risk losing the whole industry. Referring to Mr Miliband's decision to ban any further exploration for new oil and gas resources, he said: 'It makes no sense. The UK still has a lot of need for oil and gas and while that need exists we should be getting it from our own resources, not from imports. 'Imported oil and gas has a higher carbon footprint while the fuels we produce here generate not just energy but also jobs and taxes. We should be focusing on cutting UK demand while also maintaining the North Sea supplies we still need.' The report said Mr Miliband's ban on future exploratory drilling was 'more of a political than an economically rational decision'. It said: 'The future is uncertain. Even the presumed limited resources currently untapped may at some point be essential to meet UK demand and energy security.' The North Sea Transition Task Force is an independent body but set up in co-operation with the Government to oversee implementation of the North Sea Transition Deal, which encourages oil and gas companies to invest in renewables. The report comes amid growing alarm from Britain's oil and gas industry at the pace of decline and furious lobbying to seek to change policy. Offshore Energies UK, which represents the North Sea oil and gas industry, last week claimed reserves in the area could power half of Britain's energy needs until 2050. The North Sea Transition Task Force said three key measures were needed to protect the industry, the most important being to scrap the windfall tax. It also called for changes in regulation to take account of court rulings around greenhouse gas emissions, and to clarify the rules around licensing for exploration The report prompted a furious response from environmental groups campaigning to shut down the North Sea. Robert Palmer, deputy director of Uplift, said: 'There is an urgent need for the Government to come up with a coherent plan for a fair transition for workers, supply chains and the communities they support. But that won't come from allowing more drilling and lowering taxes on oil and gas companies. 'Allowing new drilling would seriously undermine investor confidence in the Government's commitment to shifting away from oil and gas. Ministers should view this report as the oil and gas industry simply doing what it has always done: lobby for lower taxes.' A government spokesman said: 'We have already taken rapid steps in delivering a fair and orderly transition in the North Sea– with the biggest ever investment in offshore wind and up to £21.7bn in funding over the next 25 years for carbon capture and storage and hydrogen projects. 'This comes alongside the launch of Great British Energy, headquartered in Aberdeen, and the creation of a National Wealth Fund, both of which will unlock significant investment in clean power projects across the UK and help create thousands of skilled jobs.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
31-03-2025
- Business
- Telegraph
Miliband urged to scrap windfall tax to avoid mass job losses in North Sea
Ed Miliband has been urged to scrap the windfall tax and reopen the North Sea or risk wholesale job losses that could jeopardise net zero. The North Sea Transition Task Force, a private sector initiative overseen by the British Chambers of Commerce (BCC), has told the energy secretary that the taxes and exploration bans imposed on the oil and gas industry have accelerated its decline to the point where it will be largely gone before renewables can replace it. It follows new data showing that about 180 of the UK's remaining 280 active oil and gas fields will be forced to close down by 2030. That would mean a huge increase in reliance on imports from places like the US, as well as the loss of thousands of jobs in the industry and its supply chain. 'Companies are already giving up on the North Sea… confidence is at its lowest level for two decades and investment is declining at a faster rate than anticipated,' the North Sea Transition Task Force said in a report published on Monday. 'Simply put, there is a risk that oil and gas production will decline faster than anticipated, while wind and other renewable projects take longer to get established. If that gap is allowed to open, there will not be a viable industry left to transition to the renewable future.' Allowing Britain's oil and gas industry to wither would see the loss of valuable skills and knowledge needed for the transition to renewable energy, the report added. Philip Rycroft, a former permanent secretary who authored the report, said it was clear the Government needed to rethink its policy or risk losing the whole industry. Referring to Mr Miliband's decision to ban any further exploration for new oil and gas resources, he said: 'It makes no sense. The UK still has a lot of need for oil and gas and while that need exists we should be getting it from our own resources, not from imports. 'Imported oil and gas has a higher carbon footprint while the fuels we produce here generate not just energy but also jobs and taxes. We should be focusing on cutting UK demand while also maintaining the North Sea supplies we still need.' The report said Mr Miliband's ban on future exploratory drilling was 'more of a political than an economically rational decision'. It said: 'The future is uncertain. Even the presumed limited resources currently untapped may at some point be essential to meet UK demand and energy security.' The North Sea Transition Task Force is an independent body but set up in co-operation with the Government to oversee implementation of the North Sea Transition Deal, which encourages oil and gas companies to invest in renewables. The report comes amid growing alarm from Britain's oil and gas industry at the pace of decline and furious lobbying to seek to change policy. Offshore Energies UK, which represents the North Sea oil and gas industry, last week claimed reserves in the area could power half of Britain's energy needs until 2050. The North Sea Transition Task Force said three key measures were needed to protect the industry, the most important being to scrap the windfall tax. It also called for changes in regulation to take account of court rulings around greenhouse gas emissions, and to clarify the rules around licensing for exploration The report prompted a furious response from environmental groups campaigning to shut down the North Sea. Robert Palmer, deputy director of Uplift, said: 'There is an urgent need for the Government to come up with a coherent plan for a fair transition for workers, supply chains and the communities they support. But that won't come from allowing more drilling and lowering taxes on oil and gas companies. 'Allowing new drilling would seriously undermine investor confidence in the Government's commitment to shifting away from oil and gas. Ministers should view this report as the oil and gas industry simply doing what it has always done: lobby for lower taxes.' A government spokesman said: 'We have already taken rapid steps in delivering a fair and orderly transition in the North Sea– with the biggest ever investment in offshore wind and up to £21.7bn in funding over the next 25 years for carbon capture and storage and hydrogen projects. 'This comes alongside the launch of Great British Energy, headquartered in Aberdeen, and the creation of a National Wealth Fund, both of which will unlock significant investment in clean power projects across the UK and help create thousands of skilled jobs.'
