A trade agreement between the UK and India is set to drastically reduce tariffs on British cars and whiskey exported to India, while British companies would pay less for Indian clothing and food products.
The United Kingdom and India announced Tuesday that they have agreed on a free trade deal, over three years since negotiations began and then stalled under the previous UK government.
The talks between London and New Delhi resumed in February after US tariff threats.
Britain called the deal the "biggest and most economically significant" bilateral trade agreement it has signed since leaving the European Union in 2020.
The two nations hope that, by 2040, the deal will be adding 25.5 billion pounds (€30 billion or $34 billion) a year to bilateral trade between the India and the United Kingdom.
Trade between the countries totaled 42 billion pounds in 2024.
British Prime Minister Keir Starmer hailed "a new era for trade and the economy.".
"Today we have agreed a landmark deal with India — one of the fastest growing economies in the world, which will grow the economy and deliver for British people and business," he added.
Indian Prime Minister Narendra Modi described the deal as a "historic milestone" that will "catalyse trade, investment, growth, job creation and innovation in both our economies.".
"I look forward to welcoming PM Starmer to India soon," he added on X.
Later, Starmer's office confirmed that the British prime minister had accepted an invitation to visit India.
India will slash tariffs on 90% of British products sold in the country, including whisky and lamb meat, but also medical equipment and goods produced by the aerospace industry.
India is one of the world's biggest whisky markets.
Tariffs on whisky and gin are to be halved from 150% to 75% before falling to 40% by the tenth year of the deal, New Delhi will also cut tariffs on cars to 10% from over 100% at present.
The political importance lies in whether the issue moves from public comment into formal action, party response, court record, election authority notice or administrative decision.
For public institutions and political groups, the next test is whether the issue remains a public argument or turns into a formal response, legal proceeding, administrative instruction or election-related communication.
