• UK and India conclude a landmark trade agreement after three years of negotiations.
• The deal aims to boost bilateral trade by £25.5 billion ($34 billion) by 2040.
• Tariffs on over 90% of goods between the two nations will be significantly reduced.
• The agreement is seen as a major step for both economies amid global trade uncertainties.
• India will facilitate temporary visa channels for certain skilled workers in the UK.

India and the United Kingdom have successfully concluded a landmark trade pact, marking a crucial post-Brexit agreement for Britain and a pivotal moment in its trade history. The deal comes after three years of negotiations that have been influenced significantly by U.S. President Donald Trump’s tariff policies. Both nations are optimistic that the agreement will enhance trade relations and economic growth, aiming to increase bilateral trade by £25.5 billion ($34 billion) by 2040, according to Reuters, BBC, and South China Morning Post.

The newly established trade agreement will significantly reduce tariffs across various sectors, with India slicing fees on 90% of its imports from the UK, particularly alcohol and automotive products. Tariffs on British whisky and gin will drop from 150% to 75%, and eventually to 40% over a ten-year span. Additionally, Indian car tariffs, which exceed 100%, will be lowered to 10% under the pact. In return, Britain will eliminate tariffs on crucial Indian exports including textiles and food products, enhancing market access for both sides, as highlighted by Al Jazeera and New York Times.

Both Indian Prime Minister Narendra Modi and British Prime Minister Keir Starmer have hailed the agreement as a "historic milestone," emphasizing that it will catalyze job creation and foster innovation in both economies. Analysts view this agreement as particularly significant given its potential to reshape economic relationships amid ongoing geopolitical tensions, notably the trade war between the U.S. and China. This perspective is reinforced by remarks from trade experts who see it paving the way for further deals with larger economic partners, such as the U.S. and the EU, according to BBC and South China Morning Post.

While the agreement does not alter the immigration policy regarding Indian professionals broadly, it introduces a "Double Contribution Convention" designed to facilitate the temporary movement of Indian workers to the UK. This agreement is viewed as a step towards easing visa restrictions for skilled workers from India. This selective easing reflects India's intent to enhance the mobility of its workforce, critical for its burgeoning service sector, as noted by Dawn and TRT Global.