Britain and India clinch landmark deal
Published: 04:05 PM,May 06,2025 | EDITED : 08:05 PM,May 06,2025
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LONDON: Britain and India clinched a long-coveted free trade pact on Tuesday after tariff turmoil sparked by US President Donald Trump forced the two sides to hasten efforts to increase their trade in cars and food. The deal, between the world's fifth and sixth-largest economies, has been concluded after three years of stop-start negotiations and aims to increase bilateral trade by a further 25.5 billion pounds ($34 billion) by 2040 with liberal market access and eased trade restrictions.
Indian Prime Minister Narendra Modi said the trade deal was 'ambitious and mutually beneficial'. British Prime Minister Keir Starmer said it would strengthen alliances and reduce trade barriers in this 'new era for trade'. The deal lowers tariffs on goods such as advanced manufacturing parts and food products, and agrees to quotas on both sides for auto imports.
It will allow more British firms to compete for contracts in India, and enable Indian workers to travel to Britain for work, without changing Britain's points-based immigration system.
Both countries are also seeking bilateral deals with the United States to remove some of Trump's tariffs that have upended the global trade system, and the resulting turmoil sharpened focus in both London and New Delhi on the need to clinch a UK-India trade deal. — AFP
Indian Prime Minister Narendra Modi said the trade deal was 'ambitious and mutually beneficial'. British Prime Minister Keir Starmer said it would strengthen alliances and reduce trade barriers in this 'new era for trade'. The deal lowers tariffs on goods such as advanced manufacturing parts and food products, and agrees to quotas on both sides for auto imports.
It will allow more British firms to compete for contracts in India, and enable Indian workers to travel to Britain for work, without changing Britain's points-based immigration system.
Both countries are also seeking bilateral deals with the United States to remove some of Trump's tariffs that have upended the global trade system, and the resulting turmoil sharpened focus in both London and New Delhi on the need to clinch a UK-India trade deal. — AFP