Archive · 24 Jul 2025
UK and India to Sign Landmark Free Trade Agreement
Britain and India are making a big trade deal!
This means they'll agree to lower taxes on things like whisky and cars, making it easier for businesses to trade.
The goal is to increase trade between the two countries.
India will be able to sell more goods in Britain without paying taxes, and the same goes for Britain selling in India.
It's like a special agreement to help both countries buy and sell more things from each other, making them more money!
However, they haven't yet sorted out all the details, like some taxes on pollution, but the agreement is a big step forward.
Britain and India will sign a free trade agreement during Narendra Modi's visit.
The deal aims to boost bilateral trade by £25.5 billion ($34 billion) by 2040.
Tariffs on Scotch whisky will drop, and car duties will be reduced under a quota system.
99% of Indian exports to Britain will have zero duties, and Britain will cut tariffs on 90% of its tariff lines.
The agreement covers sectors like clean energy and insurance, but no exemption from CBAM.
- Who
- Britain and India.
- What
- Britain and India will sign a free trade agreement.
- When
- During Narendra Modi's visit.
- Where
- The agreement involves Britain and India.
- Why
- To increase bilateral trade and boost economic opportunities.
India
Britain
CBAM Exemption
India
India wanted an exemption from the UK's Carbon Border Adjustment Mechanism (CBAM).
Britain
Britain did not include an exemption from the CBAM in the trade deal.
- Agreement Type
- Free Trade Agreement
- Countries Involved
- Britain and India
- Bilateral Trade Boost Target
- £25.5 billion ($34 billion) by 2040
- Scotch Whisky Tariff Reduction
- 75% to 40% over a decade
- Car Duty Reduction
- India to 10% under quota system
- Indian Exports with Zero Duties
- 99%
- UK Tariff Lines with Reductions
- 90%