UK-India trade deal: Jonathan Reynolds claims biggest deal since Brexit will be 'especially good for the North'

UK consumers are also expected to benefit around £400m on day one of the deal, with tariffs being reduced on some Indian goods such as clothing and shoes.

It is estimated to add £4.8bn to gross domestic product, £2.2bn to wages and £25.5bn to bilateral trade each year from 2040, the Government said.

In agriculture, the 33 per cent tariff on British lamb being exported to India has been slashed to zero, which government officials say is popular with India’s growing middle classes.

This is reciprocal, however Mr Reynolds said he expected it to give a boost to exports for British farmers.

The Business Secretary confirmed to The Yorkshire Post that “there is no access being granted from us on sugar, pork, chicken or milled rice - some of the more high-profile sectors that have been speculated on”.

“This is great news on trade,” he added.

Prime Minister Sir Keir Starmer said: “We are now in a new era for trade and the economy. That means going further and faster to strengthen the UK’s economy, putting more money in working people’s pockets.”

He added: “We have agreed a landmark deal with India – one of the fastest growing economies in the world, which will grow the economy and deliver for British people and business.”

Indian prime minister Narendra Modi described it as a “historic milestone” and an “ambitious and mutually beneficial” trade agreement that will “catalyse trade, investment, growth, job creation, and innovation in both our economies”.

“I look forward to welcoming PM Starmer to India soon,” he added.

More than a dozen rounds of talks involving successive governments have taken place since 2022 with the aim of securing a trade pact with India, which is forecast to become the world’s third largest economy.

Key sticking points had included high tariffs on Scotch whisky in India and visa rules for Indian students and professionals.

Mr Reynolds confirmed that there have been no changes to immigration rules as a result of the deal.

However, it does include a double contributions convention (DCC) – which will mean Indian workers coming to Britain, and British workers going to India, on a temporary basis, will not have to pay national insurance contributions in both countries for the first three years.