National Times Bureau, May 6, 2025: British whisky and luxury cars are set to become significantly more affordable in India following a historic Free Trade Agreement (FTA) signed between the two nations. The deal, finalized after years of negotiations, marks one of the most ambitious trade pacts post-Brexit for the UK and is expected to reshape economic ties with India.
Under the agreement, India will slash the import duty on British whisky and gin from 150% to 75% immediately. This will be followed by a phased reduction to 40% over the next decade. High-end British cars will also benefit, with tariffs dropping from over 100% to just 10%, though imports will be capped under a quota system.
The FTA goes far beyond alcohol and automobiles. India will gain duty-free access for 99% of its exports to the UK, including key sectors like textiles, gems and jewelry, and food products. In return, the UK will eliminate tariffs on 90% of goods exported from India, including leather items, marine products, and car parts.
UK Prime Minister Keir Starmer called it a “game-changer,” predicting a £4.8 billion boost to the UK economy and a doubling of bilateral trade to £25.5 billion annually by 2040. Indian Prime Minister Narendra Modi hailed the deal as a “historic milestone” and invited Starmer to India to build on the momentum.
The agreement also touches on the movement of professionals. Indian workers will find it easier to take up job opportunities in the UK, though the deal doesn’t change the country’s current immigration framework. Instead, it streamlines processes within the existing system, signaling a mutual push to expand people-to-people links.
The trade pact signals a shift in global alliances and is a strategic win for both countries. For the UK, it is a key step in redefining its trade footprint post-EU, and for India, it provides expanded access to a wealthy consumer market while strengthening its image as a global trade partner.
