British Prime Minister Keir Starmer called the forthcoming Free Trade Agreement (FTA) with India a "landmark" victory for the UK economy, set to be finalized during Indian Prime Minister Narendra Modi’s visit to Chequers. The deal promises to slash tariffs, unlock £6 billion in new investments, and add £4.8 billion annually to UK GDP by 2040.

The FTA will reduce India’s tariffs on UK goods from 15% to 3%, making British products like whisky, cars, and cosmetics more affordable in India. Whisky tariffs will drop from 150% to 75% upon signing, falling further to 40% over a decade. UK exports to India are projected to rise 60%, adding £15.7 billion by 2040, with bilateral trade increasing 39% to £25.5 billion annually.

“This deal will drive British jobs and growth,” Starmer said, highlighting benefits for manufacturing, aerospace, and automotive sectors. Tariffs on aerospace goods will fall from 11% to 0%, and automotive tariffs will drop from 110% to 10% under a quota. UK businesses will gain better access to India’s market, while Indian firms expand in the UK, creating thousands of jobs.

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The agreement opens India’s renewable energy market to UK clean energy firms and secures access for British financial services. A renewed Comprehensive and Strategic Partnership will deepen ties in defence, education, climate, and technology. Enhanced cooperation will also address corruption, fraud, and irregular migration through intelligence sharing.

UK Business Secretary Jonathan Reynolds said the deal will benefit all UK regions, with companies like Airbus and Rolls-Royce securing major contracts. The FTA positions the UK as a top investment destination, promising cheaper goods and higher living standards for Brits.

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