The UK and India have concluded a significant bilateral Free Trade Agreement (FTA) aimed at strengthening economic cooperation and reducing trade barriers across key sectors. 

The deal will eliminate or reduce tariffs on 90% of UK exports to India, including substantial cuts on whisky and gin duties from 150% to 75%, eventually declining to 40% by the tenth year. Automotive tariffs will be reduced to 10%, subject to quota limitations. 

The FTA also covers tariff reductions on UK exports such as aerospace components, cosmetics, lamb, salmon, medical devices, and electrical machinery. 

In 2024, total bilateral trade in goods and services reached £42.6 billion, marking an 8.3% year-on-year increase. 

While the agreement opens new export opportunities, analysts caution that lower barriers for Indian steel and aluminum, a major export segment, could increase downward pricing pressure in the UK domestic market.