New Delhi: In a major win for the UK economy and working people, the United Kingdom and India on May 6 agreed to a landmark Free Trade Agreement (FTA) that is set to transform economic ties between the two democracies. The deal is projected to boost the UK economy by £4.8 billion and increase wages by £2.2 billion annually in the long term, offering significant benefits for businesses and consumers alike.
According to the details received by Ziraat Times, the agreement, finalized after intensive negotiations led by Business and Trade Secretary Jonathan Reynolds and Indian Commerce Minister Piyush Goyal, will eliminate or reduce tariffs on 90% of tariff lines for UK exports. These reductions will span sectors from whisky and cosmetics to medical devices and aerospace components. Ziraat Times here produces the key highlights of the deal:
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Whisky and gin tariffs slashed from 150% to 75%, reducing further to 40% over ten years.
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Automotive tariffs cut from over 100% to 10% under quota.
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Medical devices, chocolate, salmon, lamb, and other UK exports will benefit from major tariff reductions.
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Indian consumers will gain access to more affordable UK products, while British shoppers may enjoy reduced prices on imported Indian goods such as footwear and frozen prawns.
The deal is expected to boost bilateral trade by £25.5 billion, providing the UK a competitive advantage in the Indian market, which is forecast to become the third-largest economy globally within three years.
Prime Minister Keir Starmer welcomed the agreement, stating:
“We are now in a new era for trade and the economy. That means going further and faster to strengthen the UK’s economy, putting more money in working people’s pockets. Through this government’s stable and pragmatic leadership, the UK has become an attractive place to do business.”
Business and Trade Secretary Jonathan Reynolds added:
“By striking a new trade deal with the fastest-growing economy in the world, we are delivering billions for the UK economy and unlocking growth in every corner of the country – from advanced manufacturing in the North East to whisky distilleries in Scotland.”
Economic & sectoral benefits
UK companies in advanced manufacturing, clean energy, life sciences, and creative sectors are expected to see major gains. The deal also supports small and medium-sized enterprises by streamlining customs procedures and introducing new digital trade commitments.
Additional benefits include:
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Copyright protections extended to 60 years for UK creatives.
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Easier market entry for UK exporters through simplified Indian customs.
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Unprecedented access to India’s renewable energy procurement market.
Positive business reaction
Industry leaders have hailed the deal as transformative:
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Scotch Whisky Association: CEO Mark Kent said the tariff reduction could increase exports to India by £1 billion over five years and create 1,200 UK jobs.
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Premier League: CEO Richard Masters praised the deal for boosting UK businesses and expanding the League’s reach in India.
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Standard Chartered: CEO Saif Malik described it as a “significant achievement” for both countries’ growth and innovation.
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UPS: MD Markus Kessler said the agreement opens new markets for UK businesses of all sizes.
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UK-India Business Council: Chair Richard Heald OBE called the FTA a “milestone” in deepening UK-India strategic ties.
Ethical and social commitments
The UK has also ensured that the deal upholds its core values:
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India’s first-ever trade chapters on anti-corruption, labour rights, gender, consumer protection, and development.
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No compromise on the NHS, immigration policy, food standards, or animal welfare.
