UK and India clear final hurdles for July trade deal launch

The pact aims to integrate the world's fifth- and sixth-largest economies, with government projections estimating a £4.8 billion boost to British GDP and a long-term increase in bilateral trade of £25.5 billion. Central to the agreement is a phased reduction in tariffs: India will slash duties on British whisky from 150% to 40% over a decade, while automotive tariffs will drop from 100% to 10% under a quota system. Britain, in turn, will lower barriers on Indian textiles, footwear, and select food products.

Implementation was nearly derailed by India’s apprehension over Britain’s plan to impose stricter steel duties starting July 1, intended to shield domestic manufacturers from global supply surges. To salvage the deal, the Indian government confirmed that 85% of its exports would remain unaffected by these measures, with remaining lines granted access through quotas. Beyond trade in goods, the countries extended the social security exemption period for temporary workers from three to five years, effectively eliminating double contributions for employees moving between the two nations. Business and Trade Secretary Peter Kyle noted that the agreement grants British exporters a distinct advantage over international rivals, marking the swiftest transition from signature to implementation in recent history.