The UK and India have finalised a long-anticipated trade agreement that will slash tariffs on key exports like whisky, cars, clothing, and jewellery, boosting trade between the two nations by an estimated £25.5 billion annually by 2040.
Prime Minister Sir Keir Starmer hailed the deal as a major win for British businesses and consumers, calling it a “landmark” agreement that will “deliver for British people and business.” Indian Prime Minister Narendra Modi echoed the sentiment, calling it an “historic milestone” that will drive job creation, investment, and innovation across both economies.
While the deal does not alter UK immigration policy, including student visas, it opens doors for UK exports such as gin, whisky, aerospace components, and luxury cars, which will see major tariff reductions. In return, UK consumers will benefit from cheaper imports of Indian goods like clothing, footwear, jewellery, and food product,s including frozen prawns.
Business Secretary Jonathan Reynolds said the agreement is the most economically significant trade pact the UK has signed since Brexit, with key sticking points like the 100% tariff on high-end British cars and 150% on whisky now dramatically reduced. The deal is expected to come into force within a year, pending final legislative approvals in both countries.
