• India and the UK have signed a landmark free trade agreement aimed at boosting bilateral trade.
• The deal includes significant tariff reductions on a range of goods, including textiles, whisky, and cars.
• 99% of Indian exports will benefit from zero tariffs, while average tariffs on UK goods will drop from 15% to 3%.
• Projected increase in bilateral trade by £25.5 billion by 2040, enhancing market access for both countries.
• Key sectors such as agriculture and services are set to gain substantial advantages from this agreement.

India and the UK have formalized a landmark free trade agreement during Prime Minister Narendra Modi’s recent visit, sealing a deal aimed at boosting bilateral trade significantly. The agreement will reduce tariffs on a diverse array of goods, including textiles, whisky, and cars, paving the way for enhanced market access. Negotiations for the pact concluded in May after three years of discussions, and it is expected to inject £25.5 billion ($34 billion) into trade by 2040, according to multiple reports including Reuters, Channel News Asia, and Al Jazeera.

The trade agreement will allow for a historic reduction of tariffs; specifically, 99% of Indian exports to the UK will enter duty-free, while the average duties on UK goods imported into India will decrease from 15% to just 3%. This move is projected to facilitate cheaper prices for consumers in both countries. Tariffs on Scotch whisky will drop from 150% to 75% immediately and then gradually to 40% over the next decade, benefiting British producers greatly, as reported by BBC, India Times, and Reuters.

Indian Prime Minister Modi remarked that the agreement represents a "blueprint for shared prosperity," emphasizing how Indian products, particularly agricultural goods, will gain improved access to the UK market. The deal is expected to increase India's agricultural exports by over 20%, with a significant number of items receiving duty-free status, as detailed in reports from India Times and AA.

Moreover, both leaders highlighted the deal's profound implications for economic cooperation, aiming to strengthen ties in sectors ranging from defense and climate to education and law enforcement. Following the signing, Modi and Starmer also agreed to discuss matters such as organized crime and irregular migration, as shown in the statements made by various sources including Dawn, AA, and Channel News Asia.