The UK and India have today agreed a landmark trade deal set to deliver significant economic benefits for British businesses and consumers.
The agreement, announced on May 6, marks the biggest and most economically significant bilateral trade deal the UK has secured since leaving the EU.
Projections show it will add £4.8billion to the UK economy and £2.2billion in wages annually in the long run.
Negotiations were relaunched just two months ago, with Business and Trade Secretary Jonathan Reynolds and Indian Commerce Minister Piyush Goyal finalising talks in London last week.
Business and Trade Secretary, Jonathan Reynolds, welcomes Indian Minister of Commerce and Industry, Piyush Goyal, to London for trade talks
Flickr
Indian tariffs will be slashed, with reductions on 90 per cent of tariff lines and 85 per cent becoming fully tariff-free within a decade.
This will give UK businesses a competitive edge when entering India's enormous market, which is forecasted to become the third-largest global economy within three years.
British shoppers could see cheaper prices and more choice on products, including clothes, footwear, and food products.
Whisky and gin tariffs will be halved from 150 per cent to 75 per cent before reducing to 40 per cent by year ten of the deal.
Automotive tariffs will significantly reduce from over 100 per cent to just 10 per cent under a quota system.
Other goods benefiting from reduced tariffs include cosmetics, aerospace products, lamb, medical devices and salmon.
Prime Minister Sir Keir Starmer said: "We are now in a new era for trade and the economy. That means going further and faster to strengthen the UK's economy, putting more money in working people's pockets.
"Through this government's stable and pragmatic leadership, the UK has become an attractive place to do business.
LATEST DEVELOPMENTS
The deal is expected to increase trade by £25.5billion
Flickr
"Today we have agreed a landmark deal with India - one of the fastest growing economies in the world, which will grow the economy and deliver for British people and business."
"Strengthening our alliances and reducing trade barriers with economies around the world is part of our Plan for Change to deliver a stronger and more secure economy here at home."
Business and Trade Secretary Jonathan Reynolds said: "This government's number one mission is growing the economy as part of our Plan for Change, so we can put more money in people's pockets.
"By striking a new trade deal with the fastest-growing economy in the world, we are delivering billions for the UK economy and wages every year and unlocking growth in every corner of the country, from advanced manufacturing in the North East to whisky distilleries in Scotland.
Delighted to speak with my friend PM @Keir_Starmer. In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our…
— Narendra Modi (@narendramodi) May 6, 2025
"In times of global uncertainty, a pragmatic approach to global trade that provides businesses and consumers with stability is more important than ever."
Negotiators from both sides have worked since February to secure these terms.
