India, UK summarizing trade agreement, double donation conference

Prime Minister Narendra Modi is at intervals of the G20 summit in Rio de Janeiro at a bilateral meeting with British Prime Minister Keir Starmer. File | Image source: PTI

India and the UK ended a long-standing free trade agreement on May 6, 2025 (May 6, 2025), a landmark deal that represents London’s most important post-Brexit deal that was finalized on the tariffs of U.S. President Donald Trump.

The deal, a deal between the world's fifth and sixth largest economies, aims to increase bilateral trade by 25.5 billion pounds ($34 billion) in 2040, and gain access to free markets and ease trade restrictions in 2040.

Prime Minister Narendra Modi said: “These landmark agreements will further deepen our comprehensive strategic partnership and catalyze trade, investment, growth, job creation and innovation in our two economies.”

The deal lowers tariffs on goods such as whiskey, premium manufacturing parts and food, such as lamb, salmon, chocolate and biscuits. It also agreed that the quota of both parties is used for automobile imports.

Both countries are also seeking bilateral agreements with the United States to remove some of Mr. Trump’s tariffs that have lifted the global trade system, and as a result, the turmoil in London and New Delhi will focus on the need for an India-stock trade deal.

British Prime Minister Keir Starmer said: “We are in a new era of trade and economy. This means further and faster strengthening of the UK's economy.”

“Strengthening our alliances and reducing trade barriers to economies around the world is part of our plan to provide a stronger and safer economic change at home.”

The agreement marks India's opening of a long-standing market, including cars, and provides examples of early examples of India's possible approach to dealing with major Western powers such as the United States and the European Union.

Talks on a free trade deal between India and the UK were initially launched in January 2022 and became a symbol of Britain's hope for its independent trade policy after leaving the EU.

But negotiations are halted, with Britain serving as four different prime ministers since the launch date and elections of the two countries last year.