Labour Delivers Landmark UK-India Free Trade Agreement

This Labour Government has secured a historic Free Trade Agreement (FTA) with India- the fastest-growing major economy in the world. Delivering on the Plan for Change and a key manifesto promise, this deal marks the most comprehensive trade agreement India has ever signed and is set to unlock significant benefits for British workers, businesses, and consumers.

This transformative agreement is expected to boost bilateral trade by £26 billion, raise UK GDP by £4.8 billion annually, and increase wages by £2 billion each year in the long run. It will support high-quality jobs, enhance productivity, and provide a major boost to the UK’s economy across all regions including to our world class life sciences sector in the North West.

By reducing tariffs, such as cutting whisky duties from 150% to 75% immediately and down to 40% over a decade, and opening access to India’s vast £38 billion procurement market, the agreement will deliver immediate gains. UK exporters of key goods like medical devices, machinery, cosmetics, and lamb will benefit from cost reductions, improved market access, and a competitive edge over international rivals.

Crucially, the deal also supports the UK’s world-leading high-growth sectors. It ensures unprecedented access to India’s renewable energy and digital markets, safeguards intellectual property for the creative industries, and secures India’s best-ever commitments on digital trade. UK financial and professional services will enjoy equal treatment with Indian firms, underpinned by new recognition of professional qualifications.

The agreement also strengthens the UK’s position as a champion of free and fair trade. In a volatile global environment, it provides certainty for businesses and reinforces the UK’s global partnerships. As India continues its economic rise, projected to become the world’s third-largest economy within three years, the deal gives UK businesses a first-mover advantage with a new economic superpower.

Beyond trade, the FTA reflects shared values. It includes India’s first ever chapters on anti-corruption, consumer protections, labour rights, the environment, gender equality, and development. The deal also protects the NHS, upholds food and animal welfare standards, and preserves the UK’s points-based immigration system.

Finally, the agreement cements the enduring relationship between India and the UK, rooted in deep cultural, historical, and familial ties- including through our living bridge with 1.9 million people with Indian heritage calling the UK their home. As India’s trade landscape evolves, the UK will retain the ability to revisit the deal to ensure it remains world-leading.

Labour is advancing prosperity at home and securing the UK’s role as a proud, confident trading nation on the global stage.