UK signs free trade agreement with rising emerging economy

The United Kingdom and India signed a free trade agreement last week during Prime Minister Narendra Modi’s visit to London. The deal includes tariff reductions on products ranging from textiles to whisky and automobiles, thereby allowing greater market access for businesses in both countries. The two nations concluded talks on the trade pact in May, after three years of intermittent negotiations. Both sides ramped up efforts to finalize the agreement amid the tariff turbulence sparked by U.S. President Donald Trump.

The agreement between the world’s fifth- and sixth-largest economies aims to boost bilateral trade by an additional £25.5 billion (€29.3 billion) by 2040.

It is the UK’s largest trade deal since leaving the European Union in 2020, although its impact will be only a fraction of the effect of leaving the orbit of its closest trading partner, according to ABC newspaper.