India-UK Free Trade Deal Slashes Tariffs On Scotch, British Cars, And Indian Exports
India-UK Free Trade Deal Slashes Tariffs On Scotch, British Cars, And Indian Exports
New Delhi/London, July 24, 2025: India and the United Kingdom have signed a landmark Free Trade Agreement (FTA) aimed at significantly boosting bilateral trade and reducing tariffs on a wide range of goods, making items like Scotch whisky, British cars, Indian textiles, and basmati rice more affordable in both nations.
The agreement, finalised on Thursday, marks a historic day in India-UK relations and is set to reshape trade flows between the two countries. According to official sources, average tariffs on UK products entering India will drop from 15% to 3%, offering substantial price relief to Indian consumers.
Among the key beneficiaries of the FTA are:
- Scotch whisky, which will see its massive 150% import duty reduced to 75%.
- British-made cars, which currently face tariffs exceeding 100%, will now attract only 10% under a quota system.
- Other UK products like soft drinks, chocolates, biscuits, cosmetics, and medical devices will also become cheaper in India.
Meanwhile, the UK has agreed to eliminate import duties on a host of Indian goods, including textiles, leather products, jewellery, auto components, sports goods, chemicals, and machinery. Notably, gold and diamond jewellery, garments, and home textiles from India will enjoy zero import tariffs.
The UK will also cut duties on Indian processed foods, spices, tea, basmati rice, and shrimp, helping Indian exporters tap into high-demand markets.
The FTA is projected to generate significant economic impact in the UK, with expectations of creating 2,200 new jobs and a £2.2 billion annual wage boost. The British government estimates that the deal will increase UK exports to India by nearly 60%, translating to an additional £15.7 billion in trade by 2040.
Industry experts and government officials from both sides have hailed the deal as a “win-win”, opening new avenues for cooperation in sectors ranging from manufacturing and agriculture to luxury and lifestyle products.
