UK and India Sign £4.8 Billion Trade Deal in Major Post-Brexit Breakthrough.

By Caroline Ameh

The United Kingdom and India have signed a landmark £4.8 billion trade agreement, signaling a major advancement in Britain’s post-Brexit economic strategy and cementing closer ties with one of the world’s fastest-growing economies.

The deal, concluded after three years of intensive negotiations, is designed to remove or reduce trade barriers and enhance market access for a wide range of goods. British exports such as whisky, lamb, cosmetics, and soft drinks will benefit from significant tariff reductions, opening new doors for UK industries seeking growth in Asia’s expanding consumer markets.

UK Prime Minister Keir Starmer described the agreement on Tuesday as a “landmark deal with India, one of the fastest-growing economies in the world,” adding that it will “grow the economy and deliver for British people and business.” Indian Prime Minister Narendra Modi echoed the sentiment, calling the agreement “an historic milestone that is ambitious and mutually beneficial,” poised to catalyze “trade, investment, growth, job creation, and innovation” in both nations.

Under the agreement, Indian tariffs on UK whisky and gin will be slashed in stages—from the current 150% to 75% initially, with further reductions bringing them down to 40% over the next decade. Tariffs on British lamb will be eliminated immediately, dropping from 33% to 0% upon the deal’s entry into force. Cosmetics and soft drinks will also see phased tariff reductions, with soft drinks’ duties reduced to zero within seven years.

In exchange, the UK will open its market further to Indian goods, liberalizing tariffs to lower prices and increase product variety for British consumers. UK Business and Trade Secretary Jonathan Reynolds emphasized the broad benefits, stating, “In times of global uncertainty, a pragmatic approach to global trade that provides businesses and consumers with stability is more important than ever.”

The deal has been met with strong approval from industry leaders. Mark Kent, CEO of the Scotch Whisky Association, welcomed the news, noting that lower tariffs could increase exports of Scotch whisky to India by £1 billion over the next five years. “This is transformational for the industry,” he said.

Economic projections suggest the trade agreement could increase bilateral trade by £25.5 billion annually by 2040 and boost UK GDP by £4.8 billion each year. As India is forecast to become the world’s third-largest economy, the agreement places the UK in a strong position to benefit from long-term economic cooperation.

The deal is seen as a critical win for the UK as it seeks to redefine its global trade posture following its departure from the European Union.