Major Economic Boost as UK Secures Landmark Trade Deal with India.

The UK has secured a ground-breaking trade agreement with India, delivering a multi-billion-pound boost to the British economy and creating meaningful benefits for working people and businesses across the country.

This historic deal will slash tariffs on key UK exports such as whisky, cosmetics, and medical devices, cutting tariffs on 90% of UK export product lines.

Highlights include halving India’s whisky and gin tariffs from 150% to 75%, followed by further reductions to 40% by year ten, and slashing automotive tariffs from over 100% to 10% under a managed quota.

Other UK goods including aerospace parts, lamb, salmon, electrical equipment, soft drinks, chocolate, biscuits, and cosmetics will also benefit from major tariff cuts, opening new markets and making UK trade more competitive and cost-effective.

For UK consumers, the deal will bring the potential for lower prices and greater choice on products such as clothing, footwear, frozen prawns, and other imported goods as the UK lowers its own tariffs.

UK businesses will gain a vital edge over global competitors as they access India’s rapidly expanding economy, which is set to become the world’s third largest within three years.

India has agreed to drop barriers to trade, reducing tariffs worth over £400 million (based on 2022 trade figures).

Exporting to India will be streamlined, with faster customs clearance. These improvements are especially valuable for small and medium-sized enterprises (SMEs), making it easier for them to break into India’s massive market.

This landmark agreement delivers on the government’s plan for growth, raising living standards, unlocking new opportunities, and reinforcing the UK’s position as a global trading powerhouse.

What Happens Next

Now that negotiations have been concluded, the UK and India will work together to finalise the legal text of the Free Trade Agreement (FTA). The agreement will then undergo the usual pre-ratification scrutiny processes, which typically take between 6 to 12 months before full ratification.

Please note: Until the agreement is ratified, we cannot confirm how rules of origin will be evidenced or applied.

The International Business Team at East Lancashire Chamber of Commerce is ready and available to guide and support UK companies on all aspects of international trade.

Call: 01254 945903

Email: international@chamberelancs.co.uk

Whether you need help with export documentation, customs, trade compliance, or market access, our experienced team is here to assist you. Get in touch today!