Britain has just bagged its biggest post-Brexit win — a historic UK-India Free Trade Agreement that’s set to turbocharge trade by £25.5 billion annually by 2040, deliver a £4.8 billion GDP boost, and hike UK wages by £2.2 billion each year.
Signed in London on 6 May 2025 by Business and Trade Secretary Jonathan Reynolds and Indian Commerce Minister Piyush Goyal, the deal is a seismic shift in relations between the world’s fifth and sixth-largest economies.
Huge Tariff Cuts Unleashed
India will slash tariffs on 90% of goods, with 85% becoming fully tariff-free within a decade.
Whisky and gin: Tariffs slashed from 150% to 75% immediately, dropping to 40% within ten years.
Cars: Duties crashing from over 100% to just 10% under a new quota system.
Other exports: UK-made cosmetics, lamb, medical devices, and chocolate among the big winners.
Meanwhile, UK shoppers will enjoy cheaper imports of clothing, footwear, and seafood thanks to tariff liberalisations on the British side.
Boost for Small Businesses and Big Sectors
The deal will cut red tape for SMEs, streamline customs, and support digital contracts, making it easier than ever for small firms to tap into India’s booming economy.
Key industries set for a major lift include:
Aerospace and Automotive: Easier access for advanced manufacturing exports.
Clean Energy: UK firms welcomed into India’s massive renewables push.
Life Sciences: Tariff cuts on crucial medical devices.
Creative Industries: Stronger copyright protections.
Financial Services: Greater market security for UK firms.
Industry Leaders Celebrate
Mark Kent of the Scotch Whisky Association hailed the deal as “transformational,” predicting a £1 billion export boom for whisky alone.
Premier League boss Richard Masters said the deal could supercharge British sport exports to India.
Standard Chartered CEO Bill Winters called it a “significant achievement” for innovation.
UPS UK’s Markus Kessler said the deal would “connect British businesses to one of the world’s most dynamic markets.”
Social Media Buzz
Across X and Facebook, Brits celebrated the breakthrough:
“Whisky, cars, and jobs — what’s not to love? ???? #TradeWin”
“UK businesses finally getting a piece of India’s growth story. Brilliant move post-Brexit!”
A New Era in Global Trade
The deal symbolises a stronger partnership between the UK and India — two democracies with deep historical ties, including a vibrant community of 1.9 million Indian-heritage Brits.
With massive opportunities unlocked, this agreement is a giant leap forward for Global Britain, delivering on its Plan for Change and securing prosperity for decades to come.
