Historic Trade Pact: India and Britain's Free Trade Agreement Nears Completion

India and Britain are poised to finalize a monumental free trade agreement next week, according to two Indian government sources, offering Indian textiles and electric vehicles duty-free access to the UK market. Concurrently, British exports like whisky, cars, and food stand to benefit from eased trade restrictions.

Following three years of intermittent discussions, both nations announced in May the culmination of deliberations aiming to boost bilateral trade, reduce trade barriers, and enable the duty-free exchange of goods. The official signing of the agreement is likely to align with Indian Prime Minister Narendra Modi's anticipated trip to London next week.

The trade accord, once ratified by the British parliament and India's federal Cabinet, will be implemented in approximately a year. Key highlights include a significant reduction in import tariffs for Scotch whisky and cars, while providing Indian manufacturers with an extended presence in the UK market for electric and hybrid vehicles. Meanwhile, India's commerce ministry has not commented on the news, but a UK government spokesman emphasized the deal's potential benefits for both British businesses and consumers.