The UK and India finalized their free trade agreement on Tuesday after three years of negotiation delays. The agreement represents a “landmark” achievement for British businesses according to Prime Minister Keir Starmer while Indian Prime Minister Narendra Modi emphasizes mutual advantages. The agreement reduces India’s 150% whisky and gin tariffs to 75% initially before decreasing to 40% by year 10 and lowers automotive tariffs from more than 100% to 10% when using quotas.
Trade Minister Piyush Goyal of India declared that 99% of Indian exports enter the UK market duty-free which will enhance global value chain integration. The agreement includes provisions for cosmetics and medical goods to enhance economic relations between the nations while they face U.S. tariff challenges. The agreement establishes the UK as a major trade center after Brexit while India emerges as a major economic force.
