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    You are at:Home»News»International»Britain signs £25.5billion India free trade deal that could cut the cost of clothes, shoes and food for consumers and boost exports of booze and cars
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    Britain signs £25.5billion India free trade deal that could cut the cost of clothes, shoes and food for consumers and boost exports of booze and cars

    Papa LincBy Papa LincMay 6, 2025No Comments3 Mins Read0 Views
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    Britain signs £25.5billion India free trade deal that could cut the cost of clothes, shoes and food for consumers and boost exports of booze and cars
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    By DAVID WILCOCK, DEPUTY POLITICAL EDITOR FOR MAILONLINE

    Published: 09:11 EDT, 6 May 2025 | Updated: 09:20 EDT, 6 May 2025

    Britain has agreed a £25.5billion free trade deal with India that could cut the cost of high street products for UK consumers.

    An agreement hammered out with Delhi will see the UK lower tariffs on clothes, shoes and food from the subcontinent, in exchange for reciprocal cuts for products including whisky and cars.

    However questions remain over what agreement has been made on visas for Indian nationals wanting to study or work in the UK.

    This was a key sticking point that held up talks under the previous Conservative Government and Labour. 

    Business and Trade Secretary, Jonathan Reynolds welcomed Indian Minister of Commerce and Industry, Piyush Goyal to London for trade talks this week to seal the deal. 

    Prime Minister Keir Starmer said the deal would ‘grow the economy and deliver for British people and business’.

    India’s Prime Minister Narendra Modi said his country had concluded an ‘ambitious and mutually beneficial’ free trade agreement.

    In a post on X, he said: ‘Delighted to speak with my friend PM Keir Starmer. In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial free trade agreement, along with a double contribution convention.

    ‘These landmark agreements will further deepen our comprehensive strategic partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies. I look forward to welcoming PM Starmer to India soon.’

    Britain signs £25.5billion India free trade deal that could cut the cost of clothes, shoes and food for consumers and boost exports of booze and cars

    India’s Prime Minister Narendra Modi said his country had concluded an ‘ambitious and mutually beneficial’ free trade agreement.

    Business and Trade Secretary, Jonathan Reynolds welcomed Indian Minister of Commerce and Industry, Piyush Goyal to London for trade talks this week.

    Business and Trade Secretary, Jonathan Reynolds welcomed Indian Minister of Commerce and Industry, Piyush Goyal to London for trade talks this week.

    Sir Keir and Mr Modi met at the G20 last November. More than a dozen rounds of talks involving successive governments have taken place since 2022 with the aim of securing a trade pact with India, which is forecast to become the world's third largest economy.

    Sir Keir and Mr Modi met at the G20 last November. More than a dozen rounds of talks involving successive governments have taken place since 2022 with the aim of securing a trade pact with India, which is forecast to become the world’s third largest economy.

    The deal, announced on Tuesday afternoon, will mean dramatic tariff reductions on scotch whisky and car exports to India, while levies on aerospace, electricals and other food products will also fall. 

    More than a dozen rounds of talks involving successive governments have taken place since 2022 with the aim of securing a trade pact with India, which is forecast to become the world’s third largest economy. 

    Key sticking points had included high tariffs on Scotch whisky in India and visa rules for Indian students and professionals.

    Responding to the announcement, Tory shadow trade secretary Andrew Griffith said: ‘It’s good to see the Government recognise that reducing cost and burdens on businesses in international trade is a good thing, and that thanks to Brexit we can do.

    ‘But it would be even better if they would apply the same reasoning to our domestic economy, where they remain intent on raising taxes, energy costs and regulatory burdens.’

     

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    Britain signs £25.5billion India free trade deal that could cut the cost of clothes, shoes and food for consumers and boost exports of booze and cars



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