British PM hails 'landmark' trade deal with India

The UK and India signed a landmark trade agreement that promises to significantly enhance bilateral trade, reduce tariffs, and create new opportunities for businesses and consumers on both sides.

Prime Minister Keir Starmer hailed Tuesday’s deal as a pivotal step in delivering his government’s economic agenda, calling it a move towards a “new era for trade and the economy.”

“We are now in a new era for trade and the economy. That means going further and faster to strengthen the UK’s economy, putting more money in working people’s pockets,” he said.

The agreement marks a turning point in UK-India relations, with substantial tariff reductions across a wide range of sectors.

Indian tariffs will be slashed on 90 percent of tariff lines, with 85 percent of those becoming fully tariff-free within 10 years.

Tariffs on whisky and gin, currently at 150 percent, will be halved immediately and cut further to 40 percent by year 10 of the deal. Automotive tariffs, which have stood at over 100 percent, will fall to just 10 percent under a quota system.

Indian Premier Narendra Modi called the development a “historic milestone” on X, adding that the “landmark agreements” will further deepen a “comprehensive strategic partnership, and catalyse trade, investment, growth, job creation, and innovation” in the two countries.

“The two leaders agreed that expanding economic and commercial ties between India and the UK remain a cornerstone of the increasingly robust and multifaceted partnership,” Modi’s office said in a statement.

The deal also covers a range of other sectors. Tariff reductions are expected on British exports such as cosmetics, aerospace components, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate, and biscuits – making UK goods more affordable and accessible to Indian consumers.

“Through this government’s stable and pragmatic leadership, the UK has become an attractive place to do business,” Starmer said. “Today we have agreed a landmark deal with India – one of the fastest-growing economies in the world, which will grow the economy and deliver for British people and business.”

On the import side, British consumers could see lower prices and more product variety, with tariffs being liberalised on items including clothing, footwear, frozen shrimp, and other food products.

According to official projections, the deal is expected to boost bilateral trade by $34.12 billion.

“Strengthening our alliances and reducing trade barriers with economies around the world is part of our Plan for Change to deliver a stronger and more secure economy here at home,” he added.

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Source: TRT