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UK, India agree landmark free trade deal

Jul 24, 2025, 7:52am EDT
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Britain’s Prime Minister Keir Starmer and Prime Minister Narendra Modi of India shake hands after signing a free trade agreement.
Kin Cheung/Reuters

Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer signed a free trade agreement on Thursday, with Starmer hailing the pact as “the biggest and most economically significant” trade deal Britain has made since Brexit.

Under the agreement, British cars and whisky will become cheaper to export to India, while Indian textiles and jewelry will face lower tariffs when entering the UK.

The deal — first proposed three years ago — is expected to boost British exports to India by 60% by 2040, and also includes a bilateral framework to address illegal migration.

The agreement comes as New Delhi ramps up negotiations with major trade partners, including the EU and the US, as Washington threatens higher tariffs to pressure the world’s most-populous nation to expand market access.

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