India-UK clinch historic trade deal slashing tariffs, boosting exports & jobs. Key sectors win big. Discover how it impacts both economies.
India-UK Trade Deal Finalised: Landmark Agreement to Boost Bilateral Trade by $34 Billion by 2040
India-UK: India and the United Kingdom have reached an agreement on a historic free trade deal, which is the UK’s most notable trade agreement post-Brexit and India’s first such accord beyond Asia and Australia. This deal is designed to enhance trade between the two nations, with an anticipated $34 billion increase by 2040. It offers improved market access, lower tariffs, and stronger economic collaboration between the world’s fifth- and sixth-largest economies.
Prime Minister Narendra Modi praised the agreement, emphasizing its potential to drive job creation, foster innovation, and attract investment. Meanwhile, UK Prime Minister Keir Starmer described the deal as marking the beginning of a new chapter for global trade. The pact offers significant tariff reductions—India will slash duties on 90% of UK products, while the UK will remove tariffs on 99% of Indian exports. Key beneficiaries include sectors like automobiles, food and beverage, whiskey, textiles, cosmetics, and aerospace.
Negotiations, which began in January 2022, faced delays due to political changes in the UK and elections in India. With this agreement, both nations signal readiness for broader global trade integration, as they also seek similar pacts with the US and EU.
