On May 6, 2025, the United Kingdom and India finalized a landmark free trade agreement, marking the UK’s most significant post-Brexit trade deal. Concluded after over three years of negotiations, the pact aims to boost bilateral trade by £25.5 billion ($34 billion) annually by 2040.
Key Provisions:
- India will reduce tariffs on 90% of British goods, including cutting whisky tariffs from 150% to 40% over a decade, and lowering car tariffs to 10%.
- The UK will eliminate tariffs on 99% of Indian exports, such as textiles, food, and jewelry.
- The agreement includes quotas for auto imports and provisions for professional mobility, allowing Indian musicians, chefs, and yoga instructors to work in the UK.
This deal emerges amid global trade tensions, particularly due to U.S. President Donald Trump’s tariff policies, prompting both nations to seek diversified trade partnerships.