Thu Jul 24 17:01:16 UTC 2025: **Summary:**

The UK and India have signed a comprehensive trade agreement aimed at significantly boosting bilateral trade and economic ties. The deal, hailed as a “landmark moment,” will reduce tariffs on a wide range of goods, including textiles, whisky, cars, and spices, while also granting increased market access for businesses in both countries. Leaders from both nations anticipate a £25.5 billion increase in trade and a £4.8 billion annual boost to the UK economy. In addition to the trade agreement, the two countries announced £6 billion in trade and investment deals across various sectors and pledged closer cooperation on defense, migration, climate, and health. The leaders also likely discussed the recent tragic Air India crash during Modi’s visit.

**News Article:**

**UK and India Ink Landmark Trade Deal, Aiming for £25.5 Billion Boost**

**LONDON** – The United Kingdom and India have officially signed a comprehensive trade agreement on Thursday, promising to significantly strengthen economic ties between the two nations. The deal, finalized at Prime Minister Keir Starmer’s Chequers country estate, aims to reduce tariffs on a broad spectrum of goods and provide greater market access for businesses on both sides.

Prime Minister Starmer described the agreement as a “landmark moment,” while Indian Prime Minister Narendra Modi hailed it as a “blueprint for our shared prosperity.” The accord, negotiated over three years, is expected to boost trade between the UK and India by £25.5 billion and add £4.8 billion annually to the UK economy.

The agreement will lead to reduced tariffs on key goods. For instance, India’s average tariff on British goods will fall from 15% to 3%. Import taxes on whisky and gin will be halved initially, eventually dropping to 40% by the tenth year of the deal. Automotive tariffs will also see a significant reduction.

“This is not the extent or the limit of our collaboration with India,” said Starmer, emphasizing the unique historical and cultural bonds between the two countries. Modi highlighted the deal’s strategic importance for India, positioning it as a potential template for future agreements with the EU and other regions.

Alongside the trade deal, the two countries announced nearly £6 billion in new trade and investment deals spanning sectors like AI, aerospace, and dairy products. Further collaboration is planned in areas such as defense, migration, climate change, and healthcare.

The agreement must still be ratified by the UK Parliament. While Starmer hailed the deal as the “biggest and most economically significant” post-Brexit trade agreement, the Office for Budget Responsibility has previously forecast a long-term decrease in UK exports and imports due to Brexit itself.

During Modi’s visit, discussions likely included the recent Air India disaster in which 241 people died, including 52 British nationals. Modi also met with King Charles III during his visit to the UK.

Read More