United Kingdom and India Commercial Offer after three years of talks

Unlock Free

Roula Khalaf, publisher of the FT, selects her favorite stories in this weekly newsletter.

Great Britain and India on Tuesday agreed on a free trade agreement on Tuesday, which London stated that it would promote the British economy at 4.8 million pounds in the long run, with large cuts in Indian rates to whiskey exports and cars in the United Kingdom.

Conversations on the agreement, which have been dragged for three years, accelerated as a result of the imposition of United States President Donald Trump rates Last month, with London and New Delhi, eager to seal the closest commercial ties.

“In a historical milestone, India and the United Kingdom have successfully concluded an ambitious and mutually free trade agreement,” said Indian Prime Minister Narendra Modi a X after a conversation with his UK counterpart, Sir Keir Starmer.

Modi added that the agreement “would help catalyze trade, investment, growth, job creation and innovation in our economies” and that Starmer would visit India Soon.

British ministers hope that the India trade agreement may be a prelude to signing an agreement with Trump in the coming days, ahead of an agreement with the EU to begin to improve bilateral trade links at a summit on May 19.

While Britain won the lowest rates for exports to India, including whiskey, juniper and cars, New Delhi wanted better terms to help his career workers take up jobs in the computer sector, as well as on lower textile rates.

Starmer said that the agreement was a response to “a new age for trade and economics”, and it was a sign that his government, which was abused in the local election last week, was delivering the British audience.

“Today we have agreed to a reference agreement with India, one of the most growing economies in the world, which will grow the economy and give people and British businesses,” he said.

The whiskey and gin rates will be reduced from 150 percent to 75 percent before falling to 40 percent the tenth year of the agreement. The car rates will fall from more than 100 % to 10 percent, subject to a quota.

The United Kingdom government said that Indian product rates cuts would help to provide British buyers “cheaper prices and more options” in areas such as clothing, footwear and food products such as shrimp.

From the trade of 2022, the agreement would mean that India will reduce rates worth more than 400 million pounds annually when the agreement came into force, up to about £ 900 after ten years, said the United Kingdom government.

He added that he hoped that the agreement would increase bilateral trade by £ 25.5 million and the UK GDP by 4.8 million pounds in the long run.

Amy Borrett Additional Reports