UK, India sign landmark trade deal, launch strategic partnership

The UK and India signed a free trade agreement on Wednesday, with British Prime Minister Keir Starmer calling it the UK's most significant trade deal since leaving the European Union.

The agreement was formalised at Starmer's country residence Chequers during Indian Prime Minister Narendra Modi's official visit to the UK.

The trade deal eliminates or reduces tariffs on 99 percent of the UK's exports to India, including cars, Scotch whisky and medical devices.

Starmer said this will deliver an annual boost of around $6.2 billion to the country's GDP and create 2,200 new jobs.  

India will have tariff-free access to the British market for a wide range of goods, including textiles, jewellery, machinery and pharmaceuticals, aiming to double its exports to the UK by 2040.

The deal also includes provisions on mobility for skilled workers, mutual recognition of qualifications and temporary tax exemptions.

As well as the trade deal, the two countries announced their commitment to a strategic framework called 'Vision 2035'. This will include enhanced cooperation in areas like defense and security, the environment, access to critical minerals, technology and education. Progress across these areas will be reviewed annually.

Ties between the UK and India are deep, and Modi made a light reference to the current Test cricket series being played between India and England.

"There may be a swing and a miss at times, but we play with a straight bat," he smiled. "We are committed to building high-scoring, solid partnerships."

The deal is subject to ratification by both countries' parliaments and is expected to be in place by mid-2026.