Britain, India Sign Free Trade Agreement During Modi Visit

Britain and India signed a free trade agreement on July 24 during a visit by Indian Prime Minister Narendra Modi, sealing a deal to cut tariffs on goods from textiles to whisky and cars and allow more market access for businesses.

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LONDON/NEW DELHI —

Talks on the trade pact were concluded in May after three years of stop-start negotiations, with both sides hastening efforts to clinch a deal in the shadow of tariff turmoil unleashed by US President Donald Trump.

The agreement between the world’s fifth- and sixth-largest economies aims to increase bilateral trade by a further £25.5 billion ($44 billion) by 2040.

It is Britain’s biggest trade deal since it left the European Union in 2020, but its impact will be a fraction of the effect of leaving the orbit of its closest trading partner.

It is India’s biggest strategic partnership with an advanced economy, and it could provide a template for a long-mooted deal with the EU and for talks with other regions.

Both sides hailed as historic a deal that will take effect following a ratification process, likely within a year, after which companies such as whisky distiller Diageo and carmakers including BMW, Nissan, Aston Martin and Tata-owned Jaguar Land Rover could benefit from lower duties.

At his Chequers country residence, British Prime Minister Keir Starmer said there would be huge benefits for both countries, making trade cheaper, quicker and easier in a new global era for trade.