UK-India Unveil Landmark Trade Deal Boosting Economy and Consumer Benefits

In a historic move, the United Kingdom and India have finalized a significant trade agreement, fulfilling the UK government's ambitions to bolster the economy and enhance living standards, according to a government announcement. The deal prominently features extensive cuts to Indian tariffs, with reductions affecting 90% of tariff lines and anticipating up to 85% of these to become entirely tariff-free within a decade.

Specifically, tariffs on whisky and gin will see a substantial decrease from 150% to 75%, further dropping to 40% by the tenth year, while automotive tariffs, currently exceeding 100%, will be reduced to 10% under a quota. Other goods, including cosmetics, aerospace components, and food items like chocolate and biscuits, will similarly benefit from tariff reductions, potentially opening markets and making trade more accessible for businesses and consumers alike.

The agreement is projected to spur a GBP 25.5 billion increase in bilateral trade, augment the UK GDP by GBP 4.8 billion, and raise wages by GBP 2.2 billion annually in the long run. As India is predicted to become the third-largest global economy within three years, the deal imparts a strategic competitive edge to UK businesses seeking access to its burgeoning market. Last-minute negotiators finalized the deal in London, marking the UK's most comprehensive trade agreement since Brexit and representing a milestone for both nations.

Prime Minister Keir Starmer emphasized the agreement as part of a broader strategy to advance the UK economy, positioning the nation as an appealing hub for business. Business and Trade Secretary Jonathan Reynolds highlighted the government's focus on economic growth under their 'Plan for Change,' aiming to deliver substantial economic benefits and secure a stronger future.

(With inputs from agencies.)