The UK and India have finalized a trade agreement that simplifies exports for UK businesses, enabling them to sell whisky, cars, and other goods to India more efficiently. The deal also reduces tariffs on Indian clothing and footwear, promoting smoother trade between the two nations.
After three years of negotiations, the UK and India have officially reached a trade agreement. Prime Ministers Keir Starmer and Narendra Modi finalized the deal during a call on Tuesday, following an intense rounds of discussion by trade officials in London last week.
The UK has secured its most significant trade agreement since Brexit, marking a milestone in its post-EU economic strategy. According to a British government forecast, the deal is expected to boost the UK’s GDP by £4.8 billion by 2040.
The UK government stated that the trade deal would lower Indian import taxes on various British products, including whisky, cosmetics, medical supplies, car and airplane parts. Under the agreement, whisky and gin tariffs will drop from 150% to 75%, eventually reaching 40% by the tenth year. Automotive tariffs will also see a great reduction, decreasing from over 100% to 10% within a specified quota system.
Indian Prime Minister Narendra Modi called the agreement a historic milestone, describing it as ‘ambitious and mutually beneficial.’ He emphasized that the pact would drive trade, investment, economic growth, job creation, and innovation in both nations. India’s Trade Ministry reported that under the agreement, 99% of Indian exports would be exempt from import duties.
Last year, trade between the UK and India totaled £42.6 billion. Britain expects the agreement will boost annual bilateral trade by £25.5 billion ($34 billion).
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