UK and India strike ‘landmark’ trade accord amid strategic realignment

Mace | 6th May 2025 | Uncategorised

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The UK and India have signed a landmark free trade agreement, reducing tariffs on goods like whisky, cars, and textiles, while expanding market access for services. The deal strengthens post-Brexit UK trade strategy and enhances India's global economic position, boosting bilateral trade by £25 billion by 2040.

UK–India Trade Deal Secures Tariff Gains, But Enforcement Gaps Persist The United Kingdom has signed a trade agreement with India, touted by Downing Street as the most significant bilateral deal since Brexit. The agreement, concluded on 6 May, comes after three years of on-off negotiations and forms part of the government’s broader effort to diversify trade relations away from the European Union. The agreement offers reduced tariffs on a limited range of British exports. Duties on Scotch whisky and gin, currently at 150 per cent, will fall to 40 per cent over ten years. UK carmakers will see a new quota-based regime that lowers automotive tariffs to 10 per cent. Agricultural goods including lamb, salmon and chocolate will also benefit from phased reductions. India gains full tariff elimination on textiles and garments, a politically sensitive sector in several British regions. The UK has also agreed to drop national insurance requirements for certain Indian service workers on assignmen...

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