The UK and India’s new free trade agreement (FTA) will begin on 15 July following a meeting between UK prime minister Keir Starmer and his Indian counterpart Narendra Modi at the G7 Leaders Summit in Evian, France.
The government says the deal, which is the UK’s largest post-Brexit international trade pact, will increase UK GDP by £4.8bn annually and bilateral trade by £25.5bn every year.
India previously said they would delay the FTA being implemented due to concerns over the impact of new UK steel measures beginning on 1 July. However, agreement was reached after business secretary Peter Kyle flew to the G7 event.
Tariffs will be cut under the deal, including whisky from 150% to 40%, automotives from 100% to 10% under a quota and 22% of cosmetics tariffs removed either from day one or after 10 years.
Peter Kyle said:
“We are bringing our landmark trade deal with India into force as quickly as we can, because we want businesses and the public to feel the benefits immediately, including cuts to tariffs of £400m within the first year alone.
“The deal gives British exporters an edge over international competitors, and I would encourage all businesses to ensure they are properly prepared to allow them to sell to India’s huge market in the years to come.”
To benefit from the tariff reductions, businesses must register with HMRC. Find more information here and further deals about the FTA here.