LONDON / NEW DELHI
The United Kingdom and India have signed a historic £16 billion free trade agreement, a landmark deal that both governments say will significantly deepen economic ties and unlock new growth opportunities for businesses and consumers in both countries.
Finalized after years of negotiations, the agreement is one of the most ambitious trade deals the UK has secured since leaving the European Union and one of India’s most wide-ranging partnerships with a Western economy. Leaders in London and New Delhi described the pact as a turning point in bilateral relations, combining economic cooperation with a broader strategic partnership.
Under the deal, India will cut or remove tariffs on around 90 percent of British goods, while the UK will grant near-duty-free access to about 99 percent of Indian exports. Officials estimate the agreement could boost annual trade by billions of pounds over the coming years and support thousands of jobs on both sides.
For the UK, major beneficiaries include Scotch whisky, automobiles, medical devices, and advanced manufacturing. Whisky tariffs, previously as high as 150 percent, will be reduced in stages, making British spirits more competitive in one of the world’s fastest-growing consumer markets. Import duties on UK cars will also be significantly lowered under a quota system.
India stands to gain expanded access for textiles, jewellery, leather goods, pharmaceuticals, engineering products, and food exports. The deal is expected to strengthen India’s manufacturing base and support employment, particularly in export-driven sectors.
Beyond goods, the agreement places strong emphasis on services and professional mobility. It includes provisions to ease short-term movement for skilled workers, especially in technology, finance, and professional services. Indian professionals working temporarily in the UK will benefit from clearer visa rules and limited social security exemptions, while British firms will gain better access to India’s services market and public procurement opportunities.
Both governments highlighted consumer benefits, saying lower tariffs should lead to reduced prices and greater choice in shops across both countries. Business groups welcomed the deal as a confidence boost amid global economic uncertainty.
The agreement will now undergo ratification in both countries, with implementation expected to be phased in over time. Once in force, officials say it will mark the beginning of a new chapter in UK-India relations, built on trade, investment, and long-term economic cooperation.
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