The most historic free trade agreement between the UK and India was finally officially signed on May 6 and finally announced to the world after more than two years of drama-filled negotiations since 2022.
The agreement will see major cuts to Indian import tariffs including a cut in duty on whisky from 150% to 75% and will continue to decline in stages to 40% over 10 years.
India has agreed to cut tariffs on 90% of UK products such as salmon, chocolate, aerospace equipment, medical devices and vehicles.
At the same time, the UK is opening its doors wide as 99% of Indian exports will enter duty-free – a ‘jackpot’ move for India’s clothing, toys and jewellery sectors which are among its main exports.
The deal was signed with a target of boosting two-way trade by $34 billion a year by 2040, although it will only come into force in a year.
For the UK, it is the biggest trade success since Brexit, while for India, it paves the way for cheaper imports and wider global influence – perhaps even making Scotch the preferred choice for consumers.
Both countries are now moving to ratify the agreement.
The agreement has not yet entered into force, but the world is watching – a new UK-India era is beginning.
