Posted By Global Banking and Finance Review
Posted on May 6, 2025
LONDON (Reuters) -Britain and India clinched a free trade agreement on Tuesday, in a landmark deal that represents London's most significant post-Brexit pact that was finalised in the shadow of U.S. President Donald Trump's tariff increases.
Below are some of the main points from the agreement:
KEY FIGURES
The agreement between India and Britain is expected to boost bilateral trade between the world's fifth and sixth largest economies by 25.5 billion pounds a year from 2040, Britain said.
Trade between the two nations totalled 42.6 billion pounds in 2024. India was Britain's 11th largest trading partner.
Britain said the deal was the "biggest and most economically significant" bilateral trade agreement it had signed since leaving the European Union in 2020.
TARIFFS
India, which has some of the world's highest tariffs on imports, will slash levies on a number of British products sold in the country, from whisky and medical devices to machinery and lamb.
Whisky and gin tariffs will be halved from 150% to 75%, before falling to 40% by the tenth year of the deal, benefiting Britain's Scotch whisky industry and making the beverage cheaper in the world's largest whisky market.
India will also cut automotive tariffs to 10% under a quota from over 100% currently.
Other British goods which will face lower tariffs include cosmetics, aerospace, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate and biscuits.
Based on 2022 data, India's tariff cuts will amount to over 400 million pounds, which is expected to more than double after 10 years.
(Reporting by Sachin Ravikumar; editing by William James)
