Starmer's India Trade Deal Faces Backlash Over Tax Breaks for Foreign Workers

The new UK-India trade deal has sparked controversy in Britain, with Prime Minister Keir Starmer defending the agreement against accusations that it unfairly favors Indian workers over British ones. Critics, including Conservative and Reform party leaders, argue the deal establishes a 'two-tier' tax system, as it exempts temporary Indian workers in the UK from paying National Insurance for up to three years—a benefit not given to British workers, who recently saw NI increases. Supporters of the deal, however, note that this exemption is part of a standard 'double contribution convention' meant to prevent double taxation and is reciprocal for British employees working temporarily in India. The agreement also includes significant tariff reductions on UK exports like whisky and cars to India, while the UK will lower tariffs on Indian goods such as clothing and food. Government officials stress that the changes apply to a limited group of workers and that there are no broader migration concessions, such as increased student visas. Indian leaders and UK officials tout the deal as a boost for economic growth, job creation, and consumer benefits in both countries, though UK estimates suggest a modest impact on overall GDP.