Britain, India sign major trade deal

Britain and India officially signed a free trade agreement on Thursday during Prime Minister Narendra Modi’s visit to the UK. The deal significantly lowers trade barriers between the two countries. India’s average tariff on British goods will drop from 15% to 3%, with major reductions on items like whisky, gin, and automobiles. For example, whisky tariffs will fall from 150% to 75%, and eventually to 40% over ten years, while British car tariffs will be reduced to 10% under a quota system.

In return, 99% of Indian exports to the UK will be tariff-free. The UK government says the agreement will create over 2,200 jobs, boost industries like aerospace and tech, and raise workers’ wages by £2.2 billion annually. It’s also expected to make consumer goods like clothing and food cheaper. Overall, the deal could increase bilateral trade by nearly 39% by 2040, reaching an estimated £25.5 billion per year.

Credit: CGTN