UK and India Finalize $6.5 Billion Trade Pact for July Launch

The $6.5 billion agreement promises significant shifts in market access for both nations. Under the terms, India will aggressively slash tariffs on British exports, most notably reducing duties on whisky from 150% to 40%. Automotive imports will also see relief, with rates capped at 100% within specific quota limits. In exchange, the UK will lower barriers on Indian-made textiles, footwear, and select food products.

Business and Trade Secretary Peter Kyle urged domestic firms to act quickly, noting that companies have a 28-day window to register for the tariff reductions. While Indian officials previously signaled intent to pause the deal over concerns regarding the UK’s new steel trade regime starting July 1, the high-level talks in France ensured the implementation remains on track. The government maintains that the pact provides a distinct competitive advantage for British exporters in the Indian market.