Yesterday, as the UK-India Free Trade Agreement was signed, it marked a landmark moment for
Britain’s financial services sector.
Not only is this the government delivering a trade deal that was talked about for many years but
never happened – it is delivering a real strategic partnership with the world’s fastest-growing major
economy.
It’s an agreement that perfectly complements our ambitious Leeds Reforms – the widest ranging
reforms to financial regulation in over a decade to attract investment and create good jobs – and
reinforces my determination to make Britain the number one destination for financial services.
The numbers speak for themselves. This landmark agreement will add £4.8bn to our economy
annually and boost wages by £2.2bn every year in the long run, putting more money in
working people’s pockets in every corner of the UK.
Nearly £6 billion in new investment and exports will create over 2,200 British jobs across the
country, from aerospace engineers in Filton to fintech specialists thriving in our growing financial
services clusters – from Glasgow to Leeds, Cardiff to Norwich.
‘Diplomacy delivers results’
They’re the good jobs paying decent wages our Industrial Strategy is designed to create.
For the City, we’ve secured unprecedented access to India’s rapidly expanding financial markets.
India’s insurance sector alone presents extraordinary opportunities. We’ve opened up these
markets by creating a level playing field that positions British insurers, asset managers, and
fintech innovators at the front of the queue.
India has never before granted market access on this scale. These new opportunities come as our
Leeds Reforms tear down barriers to investment and double our growth rate in financial services
net exports over the next decade.
India is currently the world’s fifth-largest economy but is projected to become the third-largest
within three years. Our financial services sector, already globally renowned and now being
turbocharged by the most comprehensive regulatory reforms in over a decade, has preferential
access to serve this economic powerhouse whilst benefiting from streamlined domestic
operations.
This agreement positions Britain exactly where we need to be: at the heart of the global economy,
with a reformed financial system that works for businesses and savers alike.
This government’s approach has delivered for Britain in ways that hasn’t been done before. We’ve
shown that agile diplomacy delivers results.
That’s exactly what our Plan for Change is – a continued roadmap to stability, investment and
reform that raises living standards and deliver sustained growth across every corner of our United
Kingdom.
Rachel Reeves is Chancellor of the Exchequer and MP for Leeds West and Pudsey.