UK and India agree new trade deal

The trade deal includes cutting tariffs on Indian exports of footwear to the UK.

The United Kingdom and India have struck a trade deal to cut tariffs on Indian exports to the UK of footwear, apparel, cars, foodstuffs, jewellery, gems and other articles. In turn, a reciprocal cut in Indian taxes should make it easier for UK companies to sell products such as gin and whisky, aerospace items, electrical goods, medical devices, cosmetics, lamb, salmon, chocolates, biscuits, and higher-value cars in India.

The UK government has reported that the ‘landmark’ agreement took three years of negotiation to reach, and Prime Minister Sir Keir Starmer states the deal will both boost the economy and ‘deliver for British people and business.’ The trade deal could take up to a year to come into force. At that time, according to the United Kingdom government’s Department for Business and Trade, consumers in the UK are likely to benefit from the reduction in tariffs on imported Indian goods.

Last year, trade between the UK and India is said to have totalled GBP 42.6 billion. The UK government claims that the new deal could boost that figure by an additional GBP 25.5 billion each year by 2040. India’s prime minister, Narendra Modi, has described the agreement as ‘an historic milestone that was ambitious and mutually beneficial’.

Publishing Data

This article was originally published on page 3 of the June 2025 issue of SATRA Bulletin.

Other articles from this issue »

---