A wide-reaching trade agreement has been finalised between the UK and India, aiming to ease exports for UK goods such as whisky, vehicles, and medical devices, while reducing tariffs on Indian clothing and footwear. Though talks took three years, the deal does not involve any changes to UK immigration rules, including for Indian students.

Prime Minister Sir Keir Starmer hailed the deal as a significant boost for British industry, projecting it could increase trade by £25.5 billion annually by 2040. Indian Prime Minister Narendra Modi called it a landmark moment for economic collaboration between the two nations. Tariff reductions on food items, cars, gems, and consumer goods are expected to benefit UK shoppers.

In return, British exports like premium cars, spirits, aerospace and health technologies will gain better access to the Indian market. For instance, whisky tariffs will fall from 150% to 75%, with further reductions expected, while levies on luxury cars will drop from 100% to 10% under a capped quota.

The agreement also includes better market access for services and public procurement, along with a social security arrangement that avoids double contributions for workers temporarily relocated between countries. Business leaders praised the deal as a welcome step for open trade amid growing global protectionism.