Historic India-UK Pact: A New Era of Trade and Cooperation

Britain and India have signed a landmark free trade agreement, promising significant tariff reductions and enhanced market access for both nations. The deal, the largest for the UK post-Brexit, aims to increase bilateral trade substantially by 2040 and includes partnerships in defense and climate.

In a significant diplomatic achievement, Britain and India finalized a free trade agreement on Thursday during Indian Prime Minister Narendra Modi's visit. The landmark deal aims to cut tariffs on various goods and expand market access, potentially escalating bilateral trade by £25.5 billion by 2040.

This is Britain's most substantial trade agreement since its exit from the European Union, marking a strategic economic partnership with India, the world's fifth-largest economy. British Prime Minister Keir Starmer emphasized the mutual benefits, stating the deal would facilitate cheaper, quicker, and easier trade.

As part of the agreement, tariffs on Scotch whisky will see substantial reductions, promising lucrative prospects for UK exports. In return, India will gain access to British markets for its electric and hybrid vehicles. This partnership also includes collaboration in defense, climate, and tackling crime.

(With inputs from agencies.)