In a stunning move, India and the UK sealed a groundbreaking free trade agreement (FTA) today, slashing tariffs on British whisky, cars, and more, while propelling bilateral trade by an estimated USD 34 billion annually. Signed by Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds, with Prime Ministers Narendra Modi and Keir Starmer in attendance, the deal marks a new era of economic ties.

After three years of intense negotiations, the FTA opens 99% of Indian exports to tariff-free access, covering nearly all trade categories. Indian officials hailed the agreement as a game-changer, ensuring comprehensive market access for Indian goods. Meanwhile, British firms will find it easier to export premium products like whisky, vehicles, and medical devices to India’s massive market, with average tariffs dropping from 15% to just 3%.

The UK, already importing £11 billion in Indian goods annually, expects a surge in demand for Indian products as tariffs vanish, benefiting British consumers and Indian exporters alike. “This trade deal is a massive victory for Britain,” Starmer declared, while Indian officials emphasized the pact’s role in boosting India’s global trade footprint.

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From soft drinks to cosmetics, the FTA promises cheaper, high-quality British goods for Indian consumers and a booming export market for both nations. As the agreement takes effect, it’s poised to reshape global trade dynamics, cementing India and the UK as economic powerhouses.

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