The important agreement on free trade between the United Kingdom and India was reached after three years of negotiations, which were postponed during the previous British government. Indian Prime Minister Narendra Modi stated that the agreement is "mutually beneficial for both parties." The British government characterized this event as "historic."
According to the reached agreement, the UK and India are expected to negotiate desired tariffs on Scotch whisky and dozens of other products. It presumes a reduction in India's import tariffs on whisky, cosmetics, medical products, auto parts, aircraft, and other British goods. Thus, the customs duty on whisky and gin will decrease from 150% to 75%, before being reduced to 40% by the tenth year of the agreement's implementation. Customs duties on cars will drop from over 100% to 10% within the framework of the quotas.
It is expected that the agreement will bring bilateral trade to a total of 25 billion pounds sterling ($34 billion) annually "in the long term." British Prime Minister Boris Johnson highly valued the official negotiations that began in 2022 on the free trade agreement, considering it a key goal after the UK's exit from the European Union in 2020.
The countries have held 13 rounds of negotiations without significant progress before the postponement of the negotiations in advance of the elections in 2024. After the reelection of Modi and the replacement of the conservative government with a labor-led one under Prime Minister Keir Starmer, the agreement was successfully signed.
