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The UK and India have struck an “ambitious” trade deal that will slash tariffs on products such as whisky and gin. 

The agreement will also see Indian tariffs cut on cosmetics and medical devices and will deliver a £4.8bn boost to the UK economy, according to the government.

It is also expected to increase bilateral trade by £25.5bn, UK GDP by £4.8bn and wages by £2.2bn each year in the long term.

Politics latest: PM urged to rethink two major policies

The news will be a welcome boost for the government following poor local election results, which saw Labour lose the Runcorn by-election and control of Doncaster Council to a resurgent Reform UK.

What will also be touted as a victory for Downing Street is the fact the government managed to strike a deal with India before the White House.

Speaking to reporters on Tuesday, Sir Keir Starmer hailed the “historic day for the United Kingdom and for India”.

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“This is the biggest trade deal that we, the UK, have done since we left the EU,” the prime minister said.

What trade-offs are in the ‘historic’ deal with India?


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Gurpreet Narwan

Business and economics correspondent

@gurpreetnarwan

This is the most significant trade deal Britain has negotiated since Brexit. It has been three years in the making with round the clock negotiations taking place in recent days.

Britain and India were coming from very different starting points. India’s economy is notoriously protectionist, with average tariff rates floating at around 130%. The UK, by comparison, is a very open economy. Our tariff rates hover around 5%. It means there were many prizes on offer for UK exporters, who are eyeing up a rapidly growing economy with increasingly powerful consumers.

The government will point to considerable concessions on 90% of tariff lines, 85% of them will go down to zero within the decade. It includes wins on whisky, which within ten years will be halved from the current 150%. No other country has managed to get India to move on that.

Of course there are trade-offs involved. The UK has agreed to lower tariffs on Indian textiles and apparel- a big employer in India. It will also make it easier for Indian professionals to come to the UK, something the Indians have been pushing hard on. However, there will be no formal changes to immigration policy.

Both countries have also refused to budge on certain industries. The UK has not lowered tariffs on milled rice, out of fear it could decimate native industries. The same applies to dairy for the Indians. Both sides have agreed quotas on cars for the same reason.

The Indians were pushing for an exemption for its high emission industries from the UK’s upcoming carbon tax. It is understood that will not happen.

“And it’s the most ambitious trade deal that India has ever done. And this will be measured in billions of pounds into our economy and jobs across the whole of the United Kingdom.

“So it is a really important, significant day. “

In a post on X, Indian Prime Minister Narendra Modi also welcomed the agreement as a “historic milestone” and added: “I look forward to welcoming PM Starmer to India soon.”

Negotiations for the deal relaunched in March after stalling under the Tory government over issues including trade standards and the relaxation of visa rules for Indian workers.

Overall, 90% of tariff lines will be reduced under the deal, with 85% of those becoming fully tariff-free within a decade.

Whisky and gin tariffs will be halved from 150% to 75% before falling to 40% by year ten of the deal, while automotive tariffs will go from more than 100% to 10% under a quota, the Department for Business and Trade (DBT) said.

For Indian consumers, there will be reduced tariffs on cosmetics, aerospace, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate and biscuits.

Meanwhile, British shoppers could see cheaper prices and more choice on products including clothes, footwear, and food products including frozen prawns as the UK liberalises tariffs.

India’s trade ministry said that under the deal, 99% of Indian exports will benefit from zero duty, Britain will remove a tariff on textile imports and Indian employees working in the UK will be exempt from social security payments for three years.

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Shadow trade secretary Andrew Griffith added: “It’s good to see the government recognise that reducing cost and burdens on businesses in international trade is a good thing, and that thanks to Brexit we can do.

“But it would be even better if they would apply the same reasoning to our domestic economy, where they remain intent on raising taxes, energy costs and regulatory burdens.”

The news was also welcomed by business group the British Chamber of Commerce, which said it was a “welcome lift for our exporters”.

William Bain, head of trade policy, said:  ”Against the backdrop of mounting trade uncertainty across the globe, these tariff reductions will be a big relief. Products from Scotch whisky to clothing will benefit and this will give UK companies exporting to India a clear edge on increasing sales.

“The proposals for a follow-up investment treaty will also provide a solid platform to grow manufacturing and other sectors in our two economies.”

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Ukrainian troops ‘start surrendering’ in key city but Kyiv says situation ‘dynamic’

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Ukrainian troops 'start surrendering' in key city but Kyiv says situation 'dynamic'

Ukrainian soldiers encircled by Russian forces in the key eastern city of Pokrovsk have started surrendering, the defence ministry in Moscow claims.

But Ukraine‘s military has pushed back on the report by the TASS state news agency, saying the situation is “difficult and dynamic”.

Kyiv has also claimed its positions in some districts of Pokrovsk have improved despite its city being infiltrated by Russian troops.

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Ukraine is increasing its number of assault troops in the area, the 7th Rapid Response Corps said on Facebook.

And Ukrainian troops are also working to cut Moscow’s military logistics routes, it added.

The Russian defence ministry also said its forces defeated a team of Ukrainian special forces that headed to Pokrovsk in a bid to prevent Russian forces from advancing further into the city.

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‘Footage of Ukrainian troops after surrendering’

It later posted videos of two Ukrainian troops who, it claimed, had surrendered.

The footage showed the men, one dressed in fatigues and the other in a dark green jacket, sat against a wall in a dark room, as they spoke of fierce fighting and encirclement by Russian forces.

The videos’ authenticity could not be independently verified, and there was no immediate public comment from Kyiv on the Russian ministry’s claims.

Ukrainian police officers on patrol in Pokrovsk. File pic: Reuters
Image:
Ukrainian police officers on patrol in Pokrovsk. File pic: Reuters

Ukraine’s President Volodymyr Zelenskyy has previously acknowledged that some Russian units had infiltrated the city. But he maintained that Ukraine is tackling them.

He said Russia had deployed 170,000 troops in Ukraine’s eastern Donetsk province, where Pokrovsk is located, in a major offensive to capture the city and claim a big battlefield victory.

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Multiple Russian missiles strike Ukraine’s Zaporizhzhia

‘Operation to destroy enemy forces’

Ukraine’s army chief Oleksandr Syrskyi said on Saturday the situation in Pokrovsk remained “hardest” for Ukrainian forces, who were trying to push Russian troops out.

But he insisted there was no encirclement or blockade as Moscow has claimed.

“A comprehensive operation to destroy and push out enemy forces from Pokrovsk is ongoing. The main burden lies on the shoulders of the units of the armed forces of Ukraine, particularly UAV operators and assault units,” Mr Syrskyi said.

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24 hours in the kill zone

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Why is Ukraine attacking Moscow? What’s behind Putin’s nuclear test?

Why is Pokrovsk important?

One of Moscow’s key aims has been to take all of Ukraine’s industrial heartland of coal-rich Donbas, which comprises of the Luhansk and Donetsk provinces. Kyiv still controls about 10% of Donbas.

Capturing Pokrovsk, which Russian media has dubbed “the gateway to Donetsk”, and Kostiantynivka to its northeast, would give Moscow a platform to drive north towards the two biggest remaining Ukrainian-controlled cities in Donetsk – Kramatorsk and Sloviansk.

‘Key Russian fuel pipeline struck’

Meanwhile, Ukraine’s military intelligence, known as HUR, has said its forces have hit an important fuel pipeline in the Moscow region that supplies the Russian army.

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Dramatic drone rescue in Ukraine’s kill zone

In a statement on Telegram, HUR said the operation late on Friday was a “serious blow” to Russia’s military logistics.

HUR said its forces struck the Koltsevoy pipeline, which is 250 miles long and supplies the Russian army with gasoline, diesel and jet fuel from refineries in Ryazan, Nizhny Novgorod and Moscow.

The operation, which targeted infrastructure near Ramensky district, destroyed all three fuel lines, HUR said.

The pipeline was capable of transporting up to three million tonnes of jet fuel, 2.8 million tonnes of diesel and 1.6 million tonnes of gasoline annually, HUR said.

Russia ‘targets gas production site’

Also overnight, Russia launched an attack on a gas production site in Poltava, in central Ukraine.

A fire broke out, the local administration said, but no injuries were reported.

Kyiv condemns ‘nuclear terrorism’

Ukraine’s foreign ministry has condemned Russian strikes this week on substations powering some of its nuclear plants.

It accused Russia of carrying out “targeted strikes on such substations” which “bear the hallmarks of nuclear terrorism”.

Elsewhere, a civilian died and 15 more were injured on Saturday morning after Russia struck the Mykolaiv region in southern Ukraine with a ballistic Iskander missile, local official Vitaliy Kim said.

A child was among those hurt in the strike, he added.

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‘We have no food, no water… it feels like the wilderness’: The communities shredded and still stranded by Hurricane Melissa

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'We have no food, no water... it feels like the wilderness': The communities shredded and still stranded by Hurricane Melissa

The death toll in Jamaica after Hurricane Melissa could rise, with certain communities still marooned from the rest of the island, according to the police chief for the worst-affected area. 

Coleridge Minto, superintendent of police for St Elizabeth Parish, told Sky News that his area has recorded six deaths directly related to the hurricane.

“We are hoping there is no more,” he said. “The reality is we have not yet communicated with all our station commanders in some of the other areas and so as soon as we have those reports, we could be hearing of other injuries, other situations that we were not privy to at this moment.”

The UK has pledged a total of £7.5m to assist the Caribbean’s recovery from the hurricane. Aid flights have been arriving over the past couple of days into Jamaica’s two international airports, but it’s not getting to where they need it the most.

Black River has been described as ground zero after Hurricane Melissa swept through it
Image:
Black River has been described as ground zero after Hurricane Melissa swept through it

In the town of Middle Quarters, close to where the hurricane made landfall, Vivienne Bennett is sitting, propped up against a house without a roof. Her right hand is wrapped in a kitchen towel. “I lost my finger in the hurricane,” she says, showing me her finger which is exposed to the bone. “I opened the door of my house to try and escape, and the wind slammed it back and cut my finger off.”

She asks me for painkillers and says she doesn’t have any medication to stave off infection. I ask if she has seen any government aid. “No,” she replies, “we haven’t seen anybody yet, so we’re trying to get some help. I need to get to a hospital but I don’t know how because all the roads are blocked.”

The situation is growing more dire by the day
Image:
The situation is growing more dire by the day

Her daughter, Leila, has a baby and other children are playing nearby. “We have no nappies, we have no food, we have no water,” Leila says, “it feels like the wilderness here now.”

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The road leading to Black River, the town authorities are referring to as “ground zero” for this disaster, is difficult to pass, but not impossible. A journey from the capital, Kingston, that would usually take two hours, now takes six. We drive through murky floodwater, a couple of feet deep, and through an avenue of twisted bamboo stalks.

On arrival, it’s a desperate scene. People here seem almost shell-shocked, still processing what has happened to them, unsure what to do next. One man walks past our cameraman and holds his hands in the air. “Jamaica needs help,” he says, “it’s been mashed up.” I ask what help he needs. “We need houses, food and water,” he replies.

Black River was once a wealthy town, the first in Jamaica to have electricity. But the storm has laid waste to the main street. The 300-year-old church, the seafront restaurant, the pharmacy, the Chinese supermarket, the whole town has been shredded.

A group of people sit at a bus stop on the seafront surrounded by huge rocks washed up by a 16-foot storm surge. “It’s a disaster, a disaster,” one woman calls out to me.

With communications still down across most of the island, people here have been unable to contact friends and family for five days now.

Black River has been described as ground zero after Hurricane Melissa swept through it
Image:
Black River has been described as ground zero after Hurricane Melissa swept through it

A woman called Inkiru Bernard, who is Jamaican but lives in New York, has been in touch with our team and asked us to try to find her 67-year-old mother, who lives in Black River. She’s not heard from her since the storm.

When we arrive at the address she provides, her mother, Inez McRae, is sitting on the porch. She shows me around what remains of the house where she weathers the storm. The roof is entirely gone, everything is sodden and thick with mud.

“But I’m alive,” she says, “I’ve been spared.” When Inkiru finally sees her mother on a video call, she cries with relief. “Oh mummy,” she says, “I’ve been so worried.”

Ms McRae is thankful of having 'been spared'
Image:
Ms McRae is thankful of having ‘been spared’

Tanks have been positioned on the main street in Black River and soldiers patrol it after shops and businesses were looted.

The police chief for this area, Coleridge Minto, says he understands the desperation but is urging people to be patient.

“We can appreciate that persons are trying to grab things,” he says, “persons are devastated, but we want to ensure that we maintain law.”

Army helicopters were flying over the disaster zone and some aid is now arriving into Black River. But with other villages still largely cut off from the rest of the island, this situation is growing more dire by the day.

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‘Send help’: The desperate pleas from Hurricane Melissa survivors

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'Send help': The desperate pleas from Hurricane Melissa survivors

Driving through western Jamaica, it’s staggering how wide Hurricane Melissa’s field of destruction is.

Town after town, miles apart, where trees have been uprooted and roofs peeled back.

Some homes are now just a pile of rubble, and we still don’t know how deadly this storm has been, although authorities warn the death toll will likely rise.

A total of 49 people have died in Melissa’s charge across the Caribbean – 19 in Jamaica alone.

Roads are still flooded in Jamaica
Image:
Roads are still flooded in Jamaica

The storm has blown over telephone poles, which are blocking the roads
Image:
The storm has blown over telephone poles, which are blocking the roads

My team and I headed from Kingston airport, towards where the hurricane made landfall, referred to as “ground zero” of this crisis.

On the way, it’s clear that so many communities here have been brought to their knees and so many people are desperate for help.

We drive under a snarl of mangled power lines and over huge piles of rocks before reaching the town of Lacovia in Saint Elizabeth Parish.

The hurricane stripped the entire roof off this church
Image:
The hurricane stripped the entire roof off this church

Many children live in homes with caved-in roofs
Image:
Many children live in homes with caved-in roofs

At the side of the road, beside a battered and sodden primary school, a woman wearing a red shirt and black tracksuit bottoms holds a handwritten sign in the direction of passing cars.

“Help needed at this shelter,” it says. The woman’s name is Sheree McLeod, and she is an admin assistant at the school.

She is in charge of a makeshift shelter in the school, a temporary home for at least 16 people between the ages of 14 and 86.

I stop and ask what she needs and almost immediately she begins to cry.

The primary school that has been housing those with no other place to stay
Image:
The primary school that has been housing those with no other place to stay

‘No emergency teams’

“I’ve never seen this in my entire life,” she says. “It’s heartbreaking, I never thought in a million years that I would be in the situation trying to get help and with literally no communication.

“We can’t reach any officials, there are no emergency teams. I’m hoping and praying that help can reach us soon.

“The task of a shelter manager is voluntary and the most I can do is just ask for help in whatever way possible.”

Read more:
Before and after images show hurricane’s destruction
What we know from the ground following the devastation

Sheree McLeod pleads for help for those sheltering at the school
Image:
Sheree McLeod pleads for help for those sheltering at the school

At least 16 people currently live at the school, which is being used as a temporary shelter
Image:
At least 16 people currently live at the school, which is being used as a temporary shelter

Sheree shows me the classroom where she and 15 other people rode out the hurricane which she says hung over the town for hours.

They had just a sheet of tarpaulin against the window shutters to try to repel gusts of more than 170mph and a deluge of rain.

They took a white board off the wall to try to get more shelter.

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Hurricane Melissa was ‘traumatising’

“It was very terrible,” Sheree says. “We were given eight blankets for the shelter and that was it, but there were 16 people.

“Now all their clothes and blankets that they were provided with got damaged. Some people are sleeping in chairs and on wooden desks.”

Her plea for help is echoed across this part of Jamaica.

Toppled-over chairs and rubbish line a classroom in the school
Image:
Toppled-over chairs and rubbish line a classroom in the school

The water tank at the school has run out
Image:
The water tank at the school has run out

As we’re filming a pile of wooden slats that used to be a house, a passing motorcyclist shouts: “Send help, Jamaica needs help now.”

The relief effort is intensifying. After I leave Sheree, a convoy of army vehicles speed past in the direction of Black River, the town at the epicentre of this disaster.

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Diggers work to clear debris from the road late into the night. Ambulance sirens also grow more regular as the day goes on.

Help is coming and for many here, it can’t come soon enough.

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