India And UK Sign Free Trade Agreement

• 6.05.2025, 22:33

At $34 billion.

Today, May 6, India and the UK signed a free trade agreement to reduce or eliminate duties on a range of goods. In a statement, the parties said that the agreement should increase trade turnover between the countries by $34 billion by 2040. In 2024, India-UK trade turnover totaled $57 billion - up 8.3% from a year earlier.

The agreement was signed during a visit to London by India's Commerce Minister Piyush Goyal. The agreement, in particular, provides for India to reduce duties on many goods from the UK: for example, duties on imports of whisky and gin will be reduced from the current 150% first to 75% and then to 40%, duties on cars - from 100% to 10%.

The UK also reduced duties on many goods from India, however, they were previously significantly lower than Indian. Duties on imports of some goods from India will be canceled altogether. In addition, the UK has slightly simplified the tax regime for Indians.

The negotiations on such an agreement lasted for several years. Last year, India signed a free trade agreement with European countries outside the EU. Now, the pact between India and the UK has been signed at a time when the global trading system is facing an increase in import tariffs by US President Donald Trump.