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UK-India historic trade pact signed after 3 years! What you need to know

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The UK and India have signed a landmark trade deal poised to boost bilateral trade by £25.5 billion annually by 2040. After three years of negotiation, the agreement slashes tariffs on key exports like UK whisky, cars, and medical devices, while easing India's exports of clothing, footwear, and jewellery.

 

British Prime Minister Keir Starmer called it a "historic boost" to jobs and economic growth, while Indian Prime Minister Narendra Modi hailed it as "ambitious and mutually beneficial." Tariffs on UK-made cars exported to India will fall from 100% to 10%, and levies on gin and whisky will halve to 75%. The deal also includes provisions for services, procurement, and a three-year social security exemption for workers posted temporarily between the two countries.

 


Critics, however, raised concerns over tax exemptions for companies employing Indian workers in the UK. The government maintains the pact will not affect NHS funding and safeguards remain intact.

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