RT team
India and the UK have finalized a major trade agreement after three years of talks, aiming to strengthen economic ties and boost post-Brexit and post-tariff recovery. The deal is expected to increase UK-India trade by £25.5 billion ($34 billion) and raise UK GDP and wages by billions annually, according to British officials.
Key highlights include slashing tariffs on 90% of Indian goods, with 85% going completely tariff-free within ten years. UK exports—such as whisky, gin, cars, cosmetics, and food products—will also benefit. For instance, car tariffs will drop from over 100% to just 10%, and alcohol duties will be halved initially and further reduced over time.
India’s Trade Ministry noted that 99% of its exports to the UK will be duty-free, enhancing its global trade footprint. The deal also introduces a new worker benefit—Indian and UK employees posted abroad won’t pay national insurance in the host country for up to three years.
Ongoing talks continue on investment and standards, while India has sought exemption from a future UK carbon tax. Leaders Narendra Modi and Keir Starmer praised the deal as a step toward deeper strategic and economic cooperation.
