Archive · 24 Jul 2025
India-UK Trade Deal: New Agreement to Boost Trade and Investment
India and the UK made a deal to help them trade more with each other.
This means it will be easier and cheaper to buy and sell things like drinks and clothes between the two countries.
Indian drinks such as feni and toddy will now be sold in the UK.
Scotch whisky will cost less in India.
Other items such as clothes and jewelry will also be easier to trade.
Both countries hope this deal will help their economies grow.
India and the UK signed a Free Trade Agreement (FTA) to boost trade and economic cooperation.
The FTA aims to increase trade between the countries to $120 billion by 2030.
Indian alcoholic beverages will receive Geographical Indication (GI) protection in the UK.
Scotch whisky will become more affordable in India as tariffs are reduced.
The deal will also benefit textiles, gems, engineering goods, pharmaceuticals, and IT services.
- Who
- India and the UK.
- What
- India and the UK signed a Free Trade Agreement (FTA).
- When
- Recently, during Prime Minister Narendra Modi's visit to the UK.
- Where
- The agreement is between India and the United Kingdom.
- Why
- To enhance trade, investment, and economic cooperation, aiming to increase trade volume.
Benefits
Considerations
Economic Impact
Benefits
Boosts economic activity and creates jobs.
Considerations
Reduced tariffs and increased market access will help businesses and consumers.
Market Access
Benefits
Opens access to the UK market for Indian electric and hybrid vehicle makers.
Considerations
Indian garments and home textiles gain a competitive edge.
- Trade Target
- $120 billion by 2030
- Scotch Whisky Duty Reduction
- From 150% to 75% immediately, then 40% over 10 years
- Indian Alcoholic Beverage Exports (Target)
- $1 billion by 2030
- UK's 6th Largest Investor in India
- $36 billion
