The UK and India have agreed a trade deal that will make it easier for UK firms to export whisky, cars, and other products to India, and cut taxes on India’s clothing and footwear exports.
The British government said the “landmark” agreement, which took three years to reach, did not include any change in immigration policy, including towards Indian students studying in the UK.
Prime Minister Keir Starmer said the deal would boost the economy and “deliver for British people and business”.
Last year, trade between the UK and India totalled £42.6bn and was already forecast to grow, but the government said the deal would boost that trade by an additional £25.5bn a year by 2040.
India’s prime minister, Narendra Modi, described the agreement as a historic milestone that was “ambitious and mutually beneficial”.
The pact would help “catalyse trade, investment, growth, job creation, and innovation in both our economies”, he said in a post on social media platform X.
UK Business Secretary Jonathan Reynolds said the benefits for UK businesses and consumers were “massive”.
Tariffs on gin and whisky, a key sticking point in negotiations previously, will be halved to 75%, with further reductions taking effect in later years.
Tariffs of 100% on more expensive UK-made cars exported to India will fall to 10%, subject to a quota limiting the total number.
The deal also includes provisions on the services sector and procurement allowing British firms to compete for more contracts.
