JCB has welcomed a new trade deal between the UK and India which the West Midlands will reportedly benefit from more than any other region in the UK.
Prime Ministers of the two countries met on Thursday for the signing of a landmark deal which will create thousands of jobs for Brits through Indian investment and export wins worth almost £6 billion.
New figures show the deal may deliver £190 million for the West Midlands economy as part of the Plan for Change.
977 West Midlands businesses exported goods worth £592 million to India last year, which could grow even more under the deal.
India’s trade weighted average tariff will drop from 15 per cent to three per cent which means companies in the West Midlands selling machinery to India will find it easier to sell to the Indian market. It gives the UK an advantage over international competitors in reaching the Indian market, forecast to have over a quarter of a billion high income consumers by 2050.
Aligned with the UK’s recent Industrial and Trade Strategies, the deal will support the sectors which drive the most growth for the economy such as automotives in the West Midlands. The deal will also offer significant opportunities for business and financial services in the region.
JCB CEO Graeme Macdonald said: “India is a great country in which to do business. JCB has been manufacturing machines there since 1979. So, we know India very well and the opportunity for British businesses in that huge market is significant.
“It’s the fifth largest economy in the world and is tipped to become the third largest by 2028. This Free Trade Agreement should give British businesses the confidence they need to enter the market, trade more easily and benefit from the massive opportunity.”
Business and Trade Secretary Jonathan Reynolds said: “The millions brought to the West Midlands each year from the deal we’ve signed with India will be keenly felt across local communities, whether that’s higher wages for workers, more choice for shoppers, or increased overseas sales for businesses.
“This government is proving time and again that we can deliver on our mission to grow the economy, put more money in pockets and boost living standards under our Plan for Change.”
