Archive · 25 Jul 2025
India-UK Trade Deal: New Investments, Growth, and Reduced Tariffs
India and the UK have made a trade deal!
This means it's easier for companies in both countries to buy and sell things.
The UK hopes to make a lot more money by selling more goods and services to India, like cars and whiskey.
At the same time, it's easier for Indian companies to sell things in the UK.
Both countries expect to create jobs and help grow their economies, especially in areas like technology and manufacturing.
It will take a few years for everything to get up and running, and it might depend on how well the countries work together.
The India-UK Comprehensive Economic and Trade Agreement (CETA) has been signed, aiming to boost trade and investment.
The UK anticipates a £4.8 billion annual GDP increase and £6 billion in investment and export gains by 2040.
26 British companies have secured new business in India, and 18 Indian firms are investing in the UK.
Key sectors benefiting include aerospace, technology, advanced manufacturing, and spirits.
Tariff cuts are central to the agreement, with significant reductions on goods like Scotch whisky and high-end cars.
- Who
- UK and India
- What
- The signing of the Comprehensive Economic and Trade Agreement (CETA) between India and the UK.
- When
- Signed in July at Chequers
- Where
- United Kingdom and India
- Why
- To boost trade, investment, and economic growth between the two countries.
Concerns about the deal
Benefits of the deal
Implementation and Protectionism
Concerns about the deal
Some in India are concerned about access to UK public procurement markets and the impact on Indian goods trade deficit.
Benefits of the deal
The UK is looking for efficient ratification processes, robust regulatory implementation, and for governments to resist domestic protectionist pressures.
- UK GDP increase
- Approx. £4.8 billion annually by 2040
- UK Investment & Export Gains
- £6 billion
- Companies investing in the UK
- 18 Indian firms
- Companies securing business in India
- 26 British companies
- Scotch Whisky Tariff Reduction
- From 150% to 75% immediately, and to 40% over ten years.
