Getting your Trinity Audio player ready...
|
Prime Minister Sir Keir Starmer and Indian Prime Minister Narendra Modi have signed a landmark UK–India trade agreement, expected to deliver £6 billion in investment and create 2,200 new jobs across the United Kingdom.
The deal, finalized during Modi’s official visit to the UK, is hailed as the largest of its kind in terms of economic impact on Britain. It significantly reduces tariffs on a wide range of British exports to India—from an average of 15% to 3%—with immediate cuts on whisky, soft drinks, cars, and cosmetics. In return, Indian goods such as textiles, jewellery, and food products will benefit from easier access to the UK market.
The agreement also includes enhanced cooperation on illegal migration, organised crime, and fraud, with both countries committing to share criminal records and intelligence. A new India–UK Vision 2035 strategy was launched alongside the deal, outlining future collaboration in defence, climate, education, and technology.
“This is a historic day for both our countries,” said Starmer. “Our landmark trade deal with India is a major win for Britain—creating jobs, unlocking new opportunities, and driving growth across the UK”.
Negotiations began in 2022 and concluded in May 2025. While the deal offers limited access to India’s financial and legal services sectors, talks continue on a bilateral investment treaty to protect cross-border investments.
Modi described the agreement as a “blueprint for shared prosperity,” reinforcing the strategic partnership between two of the world’s largest economies.