India, UK Sign Free Trade Deal Boosting Bilateral Trade by $30 Billion

The United Kingdom and India have finalized a significant free trade agreement after three years of negotiations, aiming to boost bilateral trade by £25.5 billion by 2040 and marking the UK's most substantial deal since Brexit. The agreement includes substantial tariff reductions, such as slashing duties on Scotch whisky from 150% to 40% over ten years, and provisions easing business mobility, including social security arrangements for Indian workers in the UK. While the deal has been hailed as a new era for trade by leaders from both countries, it also represents a strategic move amid rising global protectionism and geopolitical tensions, particularly with the potential return of U.S. tariff policies under Trump. The phased tariff cuts are expected to enhance market access and investment opportunities, although some industry voices caution about the impact on local producers and emphasize the need for expanded access to other major markets. Concurrently, the India-UK trade pact sends a strong message about India's commitment to trade liberalization and positions it favorably for future negotiations with Western powers. In contrast, a purported U.S.-UK trade deal remains a vague framework without substantive commitments, leaving tariffs in place and casting doubt on its immediate impact.