UK-India Trade Deal Unleashed: Unlocking Massive Market Access and Boosting Bilateral Growth

The UK and India have finalized a landmark free trade agreement, expected to increase bilateral trade by £25.5 billion annually and boost UK GDP by £4.8 billion each year in the long run. The deal will give UK businesses unprecedented access to India’s surging economy, slashing tariffs on 85% of goods exported from the UK to India-including high-end cars, whisky, gin, advanced manufacturing, and medical devices. For UK carmakers, tariffs will drop from over 100% to just 10% under a quota system, while duties on whisky and gin will fall from 150% to 75% immediately, then to 40% over the next decade.

 

Indian exporters will benefit from zero tariffs on 99% of goods, boosting sectors like textiles, marine products, and engineering. Consumers in both countries can expect lower prices on everything from UK chocolates to Indian apparel. The agreement also improves professional mobility and exempts certain workers from double social security contributions, further deepening economic ties.

 

Source: UK Government, BBC News, EY