Indian Prime Minister Narendra Modi has arrived in London to finalize a landmark trade deal with the UK. This agreement marks a major post-Brexit achievement for Britain and India’s first significant trade pact beyond Asia. Analysts say it signals a long-term economic alliance.
The landmark trade deal will boost British exports like whisky and cars while easing visa rules for Indian professionals. India secures tariff-free access for 99% of its exports, including textiles, gems, and engineering goods. Meanwhile, UK whisky tariffs will drop from 150% to 75% immediately, then to 40% over a decade.
British automakers also gain relief, with car import duties slashed from over 100% to just 10% under a quota system. Medical devices, pharmaceuticals, and electronics will also see reduced tariffs.
India held firm on key demands, winning concessions on work visas and professional qualifications. Temporary Indian workers in the UK will no longer pay national insurance contributions. Modi’s negotiators ensured agriculture—a sector employing 40% of India’s workforce—remained excluded from the deal.
“This agreement strengthens India’s global standing,” said economist Sanjaya Baru. However, he warned that details matter, and scrutiny will follow once full terms are released.
Despite progress, the landmark trade deal leaves sensitive topics unsettled. Financial services and legal sectors were omitted, pending a future investment treaty. The UK’s proposed carbon tax also remains contentious, as India fears it could hurt exporters.
Indian whisky producers already oppose cheaper Scotch imports, calling them “unfair competition.” Meanwhile, British firms gain unprecedented access to India’s government contracts, particularly in clean energy and infrastructure.
The deal must still pass parliamentary approval in both countries, delaying implementation until mid-2026. While celebrations begin, challenges loom. “The carbon tax could erase this deal’s benefits for India,” warned trade expert Ajay Srivastava.
For now, leaders emphasize optimism. Modi and UK Prime Minister Keir Starmer will discuss defense, tech, and security during their summit. The landmark trade deal sets a new tone—but its real test lies ahead.
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