Scotch Whiskey, British cars, chocolates to be cheaper as India, England ink trade deal

India and the UK signed the landmark free trade agreement (FTA) on Thursday, which will cut tariffs on British whiskey, cars, and a range of other items, while also boosting bilateral trade by around $34 billion annually. The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynold in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.

The FTA is expected to remove tariffs on 99 per cent of Indian exports, making it easier for Indian products to enter the UK, according to Indian officials. It will also make it simpler for British companies to sell goods like whiskey and cars in India. 

After three years of talks, the deal promises broad market access for Indian goods across sectors, covering nearly all trade between the two countries. The UK said that Indian consumers will benefit from improved access to the best British products —such as soft drinks, cosmetics, cars, and medical devices —as average tariffs will drop from 15 per cent to 3 per cent after the FTA takes effect.

The UK already imports 11 billion pounds worth of goods from India, but lower tariffs will make Indian products cheaper and more accessible for British consumers and businesses. This is expected to boost Indian exports further. 

Calling it a big achievement, UK Prime Minister Starmer described the deal as a major win for Britain. "Our landmark trade deal with India is a major win for Britain," Starmer said in a statement. 

Indian officials said the landmark agreement will significantly benefit India, as it eliminates tariffs on approximately 99 per cent of exports. The FTA will also make it easier for British firms to export whiskey, cars, and other products to India, while boosting the overall trade basket.

(With inputs from PTI)