UK and India Sign Historic Free Trade Agreement

The United Kingdom and India have entered into a groundbreaking free trade agreement (FTA) to enhance bilateral trade, investment, and economic cooperation. British Prime Minister Keir Starmer called the deal a "historic day" and a "significant victory for Britain" as the agreement has the potential to generate thousands of jobs and stimulate economic growth in the UK.

“Our historic trade agreement with India is a triumph for Britain. It will secure thousands of British jobs around the UK, open up new markets for businesses, and boost growth right across the nation, making good on our Plan for Change. We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.” Starmer stated during the signing ceremony

Key Highlights:

• UK and India sign landmark FTA, cutting tariffs on British goods from 15 percent to 3 percent
• The deal is expected to generate 6 billion pounds in trade and create over 2,200 UK jobs
• British whisky, cars, cosmetics, and medical devices among top beneficiaries of improved market access

Indian Prime Minister Narendra Modi referred to the UK and India as "natural partners," saying the two countries are "writing a new chapter" in their common history. As per the agreement, India's average tariff rate on UK goods will be cut from 15 percent to 3 percent, greatly enhancing access for British exporters.
Also Read: Trump Hits BRICS With Tariff Threat

Key beneficiaries would be UK producers of car manufacturers, cosmetic products, soft drinks, and also medical appliances. British whisky producers will be the biggest beneficiaries, with tariffs dropping immediately to 75 percent instead of 150 percent, and eventually to 40 percent over the following 10 years.

The agreement, the UK government said, will yield almost 6 billion pounds in new investment and export benefits, directly creating more than 2,200 jobs in Britain. The two nations also renewed an extensive comprehensive strategic partnership to further cooperation in defense, education, climate, technology, and law enforcement, including agreements to combat corruption, serious fraud, and irregular migration and to complete a criminal records sharing agreement.