The UK and India have concluded a landmark trade agreement following three years of negotiations, with both governments hailing it as a major step forward in boosting economic cooperation.
Announced on Tuesday, the UK government stated that the deal is expected to increase bilateral trade by £25.5 billion annually, while also contributing £4.8 billion to the UK’s GDP and raising wages by £2.2 billion each year in the long run.
The agreement includes a significant reduction in Indian tariffs, with 90% of tariff lines seeing cuts and 85% of them becoming entirely tariff-free within the next decade. According to India’s Trade Ministry, 99% of Indian exports will now enter the UK without any import duty.
“This brings us closer to our goal of becoming a global economic powerhouse,” said India’s Trade Minister, Piyush Goyal. “It protects our core interests while opening doors to India’s greater participation in global value chains.”
The deal delivers strong advantages for several UK sectors, notably alcohol and automotive. Tariffs on whisky and gin will be halved to 75% and later reduced to 40% within ten years. Automotive tariffs will drop from over 100% to just 10% under a quota.
Additional UK exports set to benefit include cosmetics, medical devices, aerospace components, lamb, salmon, chocolate, and biscuits, reinforcing the agreement’s broad economic impact.
