\n<\/p>\n
After three years of on-off negotiations, the UK and India have agreed a trade deal which will make it easier for UK firms to export whisky, cars and other products to India, and cut taxes on India’s clothing and footwear exports.<\/p>\n
The deal does not include any change in immigration policy, including towards Indian students studying in the UK, the British government said.<\/p>\n
Business Secretary Jonathan Reynolds said the benefits for UK businesses and consumers were “massive”.<\/p>\n
Last year trade between the UK and India totalled \u00a341bn and was already forecast to grow, but the government said the deal would boost that trade by an additional \u00a325.5bn a year by 2040.<\/p>\n<\/div>\n
Mr Reynolds met his Indian counterpart Piyush Goyal in London last week to put the final touches on the deal.<\/p>\n
Once it comes into force, which could take up to a year, UK consumers were likely to benefit from the reduction in tariffs on goods coming into the country from India, the Department for Business said.<\/p>\n
As well as clothing, that will include some Indian foodstuffs, such as frozen prawns.<\/p>\n
The government also emphasised the benefit to economic growth and job creation from UK firms expanding exports to India.<\/p>\n
Gin and whisky tariffs will be halved to 75%, with further reductions taking effect in later years.<\/p>\n
Import taxes on cars will fall to 10% as will levies on aerospace, electricals and some UK food products.<\/p>\n
India is forecast to become the world’s third-largest economy in a few years.<\/p>\n
US President Donald Trump’s tariff campaign has focused minds in other countries on how to respond, and increased the impetus to strike trade deals.<\/p>\n
The UK is also a high priority trading partner for Indian Prime Minister Narendra Modi’s government, which has an ambitious target to grow exports by $1 trillion by 2030.<\/p>\n<\/div>\n