Britain and India set to finalise landmark trade agreement

Britain and India are preparing to sign a pivotal free trade deal designed to strengthen both economies, according to a report by The National on July 24th.

The deal comes amid global economic uncertainty and rising U.S. tariffs, presenting a significant opportunity for both nations. It marks India’s first trade agreement beyond Asia, signalling a shift from its traditional protectionist stance. For the UK, it represents the first major trade pact since leaving the European Union.

Indian Prime Minister Narendra Modi, currently in the UK on a state visit, is expected to finalise the agreement with British Prime Minister Keir Starmer on July 24th.

Under the new terms, Indian exports such as textiles and electric vehicles will gain duty-free access to UK markets. In return, British goods including automobiles, food, and whisky will face reduced tariffs in Indian.

UK officials hailed the agreement as a “win,” estimating it could contribute £6 billion to the economy and create over 22,000 jobs as Indian firms expand their operations in Britain. Starmer commented that it will “unlock new opportunities for businesses and drive growth in every corner of the country.”

High-growth sectors such as technology, aerospace, and advanced manufacturing are expected to benefit, while UK consumers could see lower prices on everyday goods.

Tariffs on UK car exports to India will fall from 100% to 10%, creating more opportunities for British companies in the growing Indian market. British exports to India are projected to rise by 60 percent “in the long run”.

India will also gain greater access to the UK for its electric and hybrid vehicles. Indian officials noted that 99% of their country’s exports will enter the UK tariff-free under the agreement.

Britain has already invested $36 billion in India, making it the sixth-largest investor. More than 1,000 Indian companies operate in the UK, employing 100,000 people and investing $20 billion—a figure expected to grow.

The deal may also signal a broader global shift, as countries seek new bilateral partnerships in response Donald Trump threatening to impose new tariffs and global trade uncertainty.

The National, Maghrebi.org