The UK and India have finalized a significant free trade deal after years of negotiations, marking a key post-Brexit agreement for the UK.
The pact, which aims to boost bilateral trade by £25.5 billion ($34 billion) by 2040, lowers tariffs on various goods like whisky, lamb, and biscuits, while also introducing quotas on auto imports.
Indian Prime Minister Narendra Modi hailed the agreement, emphasizing its role in deepening the strategic partnership and driving economic growth. British Prime Minister Keir Starmer noted that the deal will strengthen the UK's economy and open new opportunities for job creation and innovation.
This trade agreement comes as both nations navigate the impact of U.S. President Donald Trump's tariffs, which have disrupted global trade, highlighting the need for more direct bilateral deals between the UK, India, and the U.S. The deal also reflects India's move towards more open markets, including a shift on automobile imports, setting a precedent for future agreements with other Western powers.
The UK-India trade talks began in January 2022 and culminated in this deal amid changing leadership in both countries and a global focus on reshaping trade relationships post-Brexit and amidst U.S. tariff policies.
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