The deal is expected to increase bilateral trade by 25.5 billion pounds, and Britain’s GDP by 4.8 billion pounds each year.

On Tuesday, Downing Street confirmed that Britain and India have agreed a trade deal after years of on-and-off negotiations.

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Indian tariffs will be slashed, locking in reductions on 90 percent of tariff lines, with 85 percent of these becoming fully tariff-free within a decade. Meanwhile, whisky and gin tariffs will be halved from 150 percent to 75 percent before reducing to 40 percent by year ten of the deal, while automotive tariffs will go from over 100 percent to 10 percent under a quota.

British Prime Minister Keir Starmer hailed the deal as a “landmark.” The deal is expected to increase bilateral trade by 25.5 billion pounds (US$34.12 billion), and Britain’s gross domestic product (GDP) by 4.8 billion pounds each year in the long run.

Tariff cuts will also apply to a range of other British products, including cosmetics, aerospace equipment, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate and biscuits. In exchange, Britain will reduce tariffs on Indian goods such as clothes, footwear, and food items like frozen prawns.

India’s prime minister Narendra Modi said the trade deal will “further deepen our comprehensive strategic partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies.”

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Source: Xinhua

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