UK clinches landmark free-trade pact with India: whisky, cars and tariffs slashed

The UK and India have sealed their long-awaited free-trade agreement, hailed by Prime Minister Sir Keir Starmer as Britain’s “biggest bilateral deal since Brexit”. When the pact takes effect – likely within a year – tariffs on UK whisky and gin will be cut in half, levies on premium British cars will fall from 100 % to 10 % (under a quota), and Indian duties on medical devices, cosmetics and salmon will drop, giving exporters fresh access to the world’s fastest-growing big economy. In return, tariffs on Indian clothing, footwear, seafood and jewellery entering Britain will be slashed, promising cheaper goods for UK shoppers.

The accord also opens Indian public-procurement markets to British firms, streamlines services rules and grants three-year social-security exemptions for staff temporarily posted between the two countries – a step Delhi called an “unprecedented achievement”. Downing Street emphasised that student visas and broader immigration rules are unchanged, pushing back at opposition claims the deal creates “two-tier taxes”. Officials forecast the agreement will lift bilateral trade by an extra £25.5 billion a year by 2040 and support tens of thousands of jobs on both sides.

Signed against the backdrop of US President Donald Trump’s sweeping tariff war, the FTA is being touted in London and New Delhi as a win for open markets. Business groups from the CBI to the whisky industry cheered a deal they say keeps the UK competitive while helping India inch toward its $1 trillion-export goal. Critics, however, warn cheaper imports could undercut some UK manufacturers, setting the stage for a fierce parliamentary debate before the agreement is ratified.