UK, India Finalize Landmark Free Trade Deal

India and the UK have signed a landmark Free Trade Agreement (FTA), praised by Prime Ministers Narendra Modi and Keir Starmer as a historic move for deepening economic ties. The pact reduces India's average tariff on UK goods from 15% to 3%, with immediate cuts on Scotch whisky and luxury cars, making these goods cheaper in India. In return, 99% of Indian exports—including textiles, footwear, gems, processed foods, and marine products—will receive duty-free access to the UK, benefiting Indian farmers, MSMEs, and labor-intensive sectors. The FTA is projected to boost annual bilateral trade by nearly $34 billion, create thousands of jobs, and promote investment, skill development, and professional mobility. While business leaders in both countries have praised its transformative potential, critics have raised concerns over climate safeguards and limited provisions for UK financial services. The agreement still requires ratification by both parliaments, with ongoing talks on a bilateral investment treaty and the UK's proposed carbon border tax.