UK and India Sign Major Trade Deal to Boost Commerce

The UK and India have signed a significant trade agreement aimed at boosting economic ties by easing the flow of goods between the two nations. The deal, three years in the making, is set to reduce tariffs on a range of products and open up new opportunities for businesses on both sides.

Under the agreement, UK exports such as whisky, gin, cars, aerospace equipment, and food products like lamb and chocolate will see lower tariffs in India. In return, the UK will reduce import duties on Indian goods including clothing, footwear, jewellery, and frozen prawns.

British Prime Minister Sir Keir Starmer hailed the pact as a “landmark” achievement that will “deliver for British people and business,” projecting an additional £25.5 billion in trade by 2040. The deal does not include changes to immigration policies, including for Indian students.

India’s Prime Minister Narendra Modi called the agreement an “historic milestone” that will fuel job creation, innovation, and investment in both economies.

While full implementation may take up to a year, UK consumers could soon benefit from lower prices on Indian imports. However, some UK opposition parties have raised concerns that the deal may undercut domestic businesses.

With trade between the UK and India already worth £42.6 billion annually, the government describes this as the most significant bilateral trade deal since Brexit.

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