UK and India Strike Landmark Trade Deal After Three Years of Negotiations

The UK and India have reached a landmark trade agreement aimed at slashing tariffs and boosting economic ties, following three years of complex negotiations. The deal, which the UK government calls its most significant bilateral trade pact since Brexit, will reduce tariffs on a wide range of goods, including whisky, cars, and medical devices, while easing import costs on Indian exports such as clothing, footwear, jewelery, and frozen food.

Prime Minister Sir Keir Starmer said the agreement would “deliver for British people and business,” forecasting an additional £25.5 billion in annual trade by 2040. Indian Prime Minister Narendra Modi praised the deal as “ambitious and mutually beneficial,” highlighting its potential to drive job creation, investment, and innovation across both economies.

Among the key changes, tariffs on UK-made whisky will drop from 150% to 75%, with further reductions over time, and levies on high-end British cars will fall from 100% to 10%, subject to quotas. UK exports such as aerospace parts, salmon, chocolate, and cosmetics will also benefit, while UK consumers are expected to see lower prices on Indian imports.

Though the deal excludes changes to immigration policy, a key sticking point in previous talks, it opens new opportunities for British firms in India’s services and procurement markets. Some opposition figures have voiced concern about potential impacts on UK manufacturers, but government officials maintain the deal is structured to benefit both economies while preserving the domestic industry.