Trade secretary to visit India in February for FTA talks
“India is a top priority partner for the UK, and we want to elevate that ambition across all aspects of our relationship, but also to take it to new heights,” said Reynolds in London.
Jonathan Reynolds highlighted that the UK-India trading relationship was valued at GBP 41 billion for the year ending September 2024. (Photo: Getty Images)
BUSINESS and trade secretary, Jonathan Reynolds, on Monday (27) revealed plans to visit India next month with a focus on finalising the Free Trade Agreement (FTA) negotiations as the UK government aims to enhance bilateral ties.
The visit comes after prime minister Sir Keir Starmer last year announced an early 2025 relaunch of UK-India FTA talks, following his meeting with prime minister Narendra Modi on the sidelines of the G20 Summit in Brazil in November.
The trade talks were stalled by the 2024 general elections in both India and the UK.
“India is a top priority partner for the UK, and we want to elevate that ambition across all aspects of our relationship, but also to take it to new heights,” said Reynolds in London.
He added, “I want to reaffirm the UK's commitment to deliver growth for both countries through the trade deal we're talking about, through the Comprehensive Strategic Partnership and the Technology Security Initiative.
“And I can let you know, exclusively, I hear what you say about urgency, [that] I've just been finalising my own visit to India next month to make sure we proceed on that basis.”
Reynolds highlighted the strength of the bilateral trading relationship which stood at £41 billion in the year until September 2024.
He said, “I believe a comprehensive FTA and Bilateral Investment Treaty would be important to the UK, but I also believe it would show the world India is serious about its relationships to global trade, strengthening supply chains with trusted partners and delivering substantial mutual benefits for business and consumers across both countries. And, the rest of the world would stand up and take notice of an agreement of that kind.”
In his Independence Day address, Modi said the goods and services tax (GST) would be reformed and rates lowered by Diwali, which falls in October. (Photo: Getty Images)
INDIA’s government will reduce consumption tax rates by October, a top official said on Friday, hours after prime minister Narendra Modi announced reforms to support the economy amid trade tensions with the United States.
The federal government is planning a two-rate structure of 5 per cent and 18 per cent, removing the existing 12 per cent and 28 per cent slabs, the official told Reuters, requesting anonymity as the plans are still under discussion.
According to the official, 99 per cent of items currently taxed at 12 per cent, including butter, fruit juices, and dry fruits, will be shifted to 5 per cent. The move could affect companies such as Nestle, Hindustan Unilever, and Procter & Gamble.
The announcement follows rising trade tensions between New Delhi and Washington over US tariffs on Indian goods. Modi on Friday urged people to promote domestic products, with some of his supporters calling for a boycott of American goods.
In his Independence Day address, Modi said the goods and services tax (GST) would be reformed and rates lowered by Diwali, which falls in October.
"This Diwali, I am going to make it a double Diwali for you. Over the past eight years, we have undertaken a major reform in goods and services tax. We are bringing next-generation GST reforms that will reduce the tax burden across the country," Modi said.
The final decision will be taken by the GST Council, chaired by the finance minister and comprising state finance ministers, the official said. The council is expected to meet by October.
Brokerage Citi estimates that about 20 per cent of items, including packaged food, beverages, apparel and hotel accommodation, are in the 12 per cent slab. These account for 5-10 per cent of consumption and 5-6 per cent of GST revenue.
If most of these are moved to the 5 per cent slab and some to 18 per cent, the government could see a revenue loss of about 500 billion rupees, or 0.15 per cent of GDP, Citi said. This could take the total policy stimulus for households in the 2025-26 financial year to 0.6-0.7 per cent of GDP, it added.
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CEO of Morrisons Rami Baitiéh (centre) takes on the Heera Foods Gol Gappay challenge
Morrisons chief executive Rami Baitiéh took part in a lively “Gol Gappay Challenge” at the supermarket’s Bradford headquarters on Tuesday, as part of celebrations for South Asian Heritage Month.
The event, hosted in the company’s central atrium, was led by Bradford-based Heera Foods, which served up its popular Gol Gappay – crispy puris filled with spiced chickpeas and tangy water – to staff and visitors.
The highlight was a 60-second eating contest where colleagues competed to finish as many Gol Gappay as possible before the clock ran down. To cheers from the crowd, Baitiéh joined in and managed four in a minute.
“It was fantastic to see the CEO of one of the UK’s biggest supermarkets join in with such enthusiasm,” said Noor Ali, senior commercial manager at Heera Foods. “Gol Gappay, also known as pani puri, are all about fun, flavour and bringing people together, and Rami certainly embraced that spirit.”
The open day formed part of Morrisons’ program of events showcasing South Asian food and culture. For Heera Foods, one of Bradford’s longest-standing South Asian brands, it was an opportunity to highlight a snack loved across the subcontinent.
Heera Foods, part of P&B Foods Ltd, has been based in Bradford since the 1960s and produces a wide range of South Asian staples and ready-to-eat products from its UK facility.
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When Mounjaro was launched in Britain, Lilly set a list price 'significantly below' that in its other three European markets to avoid delays in NHS availability. (Photo: Reuters)
ELI LILLY said on Thursday it will increase the UK list price of its weight-loss drug Mounjaro by up to 170 per cent. The price change comes as the White House urges drugmakers to raise prices in Europe to enable price cuts in the United States.
The new price, which also applies to Lilly's type 2 diabetes medicine sold under the same name, will take effect in September. A month's supply of the highest dose will rise from £122 to £330, the company said.
The increase will apply to those paying for Mounjaro privately but will not affect patients receiving it through the National Health Service (NHS), which has a separate pricing agreement, a Lilly spokesperson said.
When Mounjaro was launched in Britain, Lilly set a list price “significantly below” that in its other three European markets to avoid delays in NHS availability. “We are now aligning the list price more consistently,” the company said.
The change comes as drugmakers adjust to policy shifts in the United States, their largest market, where president Donald Trump is seeking lower domestic drug prices while encouraging increases overseas.
Last week, Lilly CEO David Ricks told investors that price parity between the US and Europe was desirable over time, but said European governments “are not signing up to pay more for drugs.”
The US pays more for prescription drugs than any other country, often nearly three times more than other developed nations. Trump says he wants to narrow this gap to prevent Americans from being “ripped off.”
Reuters reported last week that the Trump administration has been in talks with drugmakers about ways to equalise prices across markets.
A list price is the amount set by a drug manufacturer before any discounts or rebates.
Lilly said it is working with private UK healthcare providers, including online pharmacies, which can set their own prices, to maintain access to the medicines.
Lilly launched Mounjaro in the UK in February 2023, while rival Novo Nordisk’s Wegovy became available in the country in September 2023.
(With inputs from Reuters)
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The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
UK's economy grew more than expected in the second quarter, though at a slower pace than the first three months of 2025, as US tariffs and a higher UK business tax weighed on activity, official data showed on Thursday.
Gross domestic product rose 0.3 per cent in April-June, the Office for National Statistics (ONS) said, above analyst forecasts of 0.1 per cent growth. This followed a 0.7 per cent rise in the first quarter.
“Today’s economic figures are positive with a strong start to the year and continued growth in the second quarter,” said finance minister Rachel Reeves.
“But there is more to do to deliver an economy that works for working people,” she added, after a challenging first year in power for the Labour government.
The ONS said growth in construction and services in the second quarter helped offset a fall in production.
“Growth was led by services, with computer programming, health and vehicle leasing growing,” said Liz McKeown, ONS director of economic statistics.
Data released on Wednesday showed UK unemployment at a four-year high of 4.7 per cent in the second quarter.
The slowdown comes after the government raised the UK business tax from April, when US President Donald Trump’s 10 per cent baseline tariff on most goods also took effect.
Citing risks from US tariffs, the Bank of England last week cut its key interest rate by a quarter point to 4 per cent.
“The weak global economy will remain a drag on UK GDP growth for a while yet,” said Ruth Gregory, deputy chief UK economist at Capital Economics.
“The full drag on business investment from April’s tax rises has yet to be felt. And the ongoing speculation about further tax rises in the (UK) autumn budget will probably keep consumers in a cautious mood,” she added.
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Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025. (Photo: Reuters)
INDIA expects trade discussions with the United States to continue despite Washington raising tariffs on its exports to 50 per cent over New Delhi’s purchase of sanctioned Russian oil, two lawmakers said on Monday, citing a briefing to a parliamentary panel on foreign affairs.
Last week, US president Donald Trump imposed an additional 25 per cent tariff on Indian goods because of India’s continued purchase of Russian oil. This brought the total duty on Indian exports to 50 per cent, among the highest for any American trading partner.
“Our relations with the US are multi-dimensional, and should not be seen only through the prism of trade,” one lawmaker said, quoting the foreign secretary’s briefing to the panel.
Panel chair Shashi Tharoor, an opposition Congress party leader, said trade talks would proceed as planned.
“As of now, there is no change in the existing plans for the sixth round,” Tharoor said, referring to a scheduled visit of a US trade delegation to New Delhi from August 25.
Earlier, junior finance minister Pankaj Chaudhary told lawmakers that about 55 per cent of India’s merchandise exports to the United States would be covered by the new tariff. His estimate included the initial 25 per cent levy, he said in a written reply to a lawmaker.
“The Department of Commerce is engaged with all stakeholders” for their assessment of the situation, Chaudhary said.
Goods trade between the United States and India was worth about $87 billion in the last fiscal year, according to Indian government estimates.
The panel also discussed reported remarks by Pakistani army chief Field Marshal Asim Munir on nuclear threats in South Asia during a visit to the United States.
“Nuclear blackmail will not work with India, and no party, or representative disagrees with this view,” Tharoor said, adding that the external affairs ministry had condemned the comments.