Historic Trade Pact: India and Britain Unite to Bolster Economy

Britain and India have signed a significant free trade agreement, aimed at enhancing bilateral trade by 2040. The deal, Britain's largest post-Brexit, reduces tariffs on goods like whisky and cars, and strengthens economic partnerships. The agreement sets the stage for India's future deals with the EU.

In a historic move, Britain and India inked a free trade agreement on Thursday, during Indian Prime Minister Narendra Modi's visit. The landmark deal, aimed at boosting trade between the two nations by 25.5 billion pounds by 2040, marks Britain's biggest economic engagement since Brexit.

British Prime Minister Keir Starmer praised the agreement, calling it a new era for global trade and highlighting its benefits for both countries. The deal will significantly reduce tariffs on several goods, providing enhanced market access for businesses, including manufacturers of whisky and cars.

This strategic partnership could potentially serve as a model for future deals between India and other regions, such as the European Union. While the agreement signifies a stride forward in global trade relations, its impact on Britain's GDP remains relatively modest.

(With inputs from agencies.)