Explore the new UK-India trade agreement, unlocking economic opportunities and strengthening bilateral ties between the two nations.
After three years of on-and-off negotiations, disrupted by political shifts within the UK, an historic trade agreement between the UK and India has been finalized. This marks a significant stride in strengthening economic ties between the two nations.
Under the new agreement, India will reduce its high import tariffs on a variety of British goods, most notably Scotch whisky. The current duty of 150% on whisky will be slashed to 75% initially, with plans to further decrease it to 40% over the next decade. Meanwhile, tariffs exceeding 100% on automobile products will be brought down to just 10% within defined quotas.
British Prime Minister Keir Starmer hailed the agreement as “a substantial victory for British enterprises, workforce, and consumers“. Similarly, Indian Prime Minister Narendra Modi praised the agreement as an “ambitious and mutually advantageous” achievement.
Aside from whisky, the agreement encompasses sectors such as cosmetics, medical products, automobiles, and aircraft components. The Indian Ministry of Commerce has stated that 99% of Indian exports to the UK will benefit from duty-free status under this new framework.
The UK anticipates that the annual bilateral trade volume will surge by £25.5 billion thanks to this agreement.
Initial negotiations commenced in 2022 following the UK’s departure from the European Union. However, they were temporarily stalled owing to the general elections in 2024. Post-elections, Narendra Modi retained his position as India’s Prime Minister, while the Labour Party assumed power in the UK.
Yorum Yap