The United Kingdom and India have finalized a landmark trade agreement designed to enhance economic cooperation by lowering trade barriers and expanding business opportunities across both countries.
The deal, which took three years to negotiate, will see significant tariff reductions on a wide range of goods. British exports such as whisky, gin, cars, aerospace components, and various food products—including lamb and chocolate—will become more affordable in the Indian market. In return, the UK will cut import duties on Indian products like clothing, footwear, jewellery, and frozen seafood.
UK Prime Minister Sir Keir Starmer praised the agreement as a “landmark” that will support British businesses and stimulate the economy, with an estimated £25.5 billion increase in trade expected by 2040. Notably, the agreement does not include any revisions to immigration rules or student visa policies.
Indian Prime Minister Narendra Modi described the deal as a “historic milestone,” emphasizing its potential to drive growth, create jobs, and encourage innovation in both countries.
Although the agreement could take up to a year to come into full effect, British consumers are expected to benefit from lower prices on Indian imports. However, critics from UK opposition parties warn the deal could pose challenges for local industries.
Currently, trade between the two nations stands at £42.6 billion annually. The UK government has called this the most substantial bilateral trade deal since its departure from the European Union.
For more information on the above, please do not hesitate to contact a member of the Killick Martin team.
