Landmark UK-India Free Trade Pact Ushers in New Era

India and the UK finalized a historic free trade agreement, representing the most significant post-Brexit deal for London. After three years, the agreement aims to boost trade by £25.5 billion by 2040, lowering tariffs on goods and easing trade restrictions, fostering economic growth and innovation.

In a historic move, India and the United Kingdom successfully concluded a pivotal free trade agreement on Tuesday. This landmark deal stands as London's most significant post-Brexit agreement, finalized amidst lingering trade tensions exacerbated by former U.S. President Donald Trump's tariff hikes.

This agreement, linking two of the world's largest economies, aims to enhance bilateral trade by an additional £25.5 billion ($34 billion) before 2040. It promises liberal market access and reduces trade constraints, benefiting sectors such as whisky, advanced manufacturing, and food products.

The pact also signifies India's strategic decision to open its protected markets, indicating a shift towards embracing major Western economies like the U.S. and the EU. This deal initially launched talks in January 2022, marking the UK's aspirations for an autonomous trade policy post-European Union.

(With inputs from agencies.)