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UK, India finally cinch trade deal

UK Secretary of State for Business and Trade Jonathan Reynolds meets Indian Minister of Commerce and Industry Piyush Goyal for trade talks, in London, United Kingdom, on April 28, 2025.​

UK Secretary of State for Business and Trade Jonathan Reynolds meets Indian Minister of Commerce and Industry Piyush Goyal for trade talks, in London, United Kingdom, on April 28, 2025.

Department for Business and Trade/Handout via REUTERS
Zac Weisz
By Zac WeiszMay 06, 2025
Zac Weisz

Zac reports on global affairs, covering everything from elections and international relations, to conflicts in Africa, Europe, and the Middle East. With the Trump administration keen to alter the world order, though, there’s a heavy emphasis right now on US politics – an area with which he is intimately familiar. He also reports on the cross-section between sports and geopolitics. Prior to joining GZERO, Zac was a senior national politics correspondent at National Journal, where he covered the 2024 presidential election from its inception to the dramatic finish, as well as major congressional actions during the Biden administration. Prior to journalism, Zac worked as an economic analyst for Oxford Economics, calculating the impact of various tax policies, as well as the United Kingdom’s exit from the European Union. Born in London, he currently resides in New York City, where you can find him playing football (the original version) or watching it on television while attempting to cook up a storm.

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The United Kingdom on Tuesday sealed its largest trade deal since leaving the European Union, inking a pact with India in a big political win for Prime Minister Keir Starmer.

The highlights: drink and drive. India’s tariffs on UK whisky and gin will halve from 150% to 75%, before falling to 40% over the next decade. Levies on UK auto products will also plummet from 100% to 10%, albeit with some quotas in place. The UK, in turn, will slash tariffs on Indian clothing, foodstuffs, and jewels.

UK-India trade surpassed $50 billion last year, and the deal is projected to add $35 billion a year by 2040.

Starmer succeeds where Sunak failed. Former PM Rishi Sunak had tried desperately to clinch a deal with India during his 20-month premiership.

The migration angle. The pact exempts Indians on short-term UK visas from paying social security taxes for three years – the UK right is already mad about that.

Mujtaba Rahman, Eurasia Group’s managing director of Europe, said the deal is “welcome news” for the UK government.

“However, the real test for Keir Starmer will be how far he can dismantle the trade friction with the UK’s biggest trading partner – the EU,” Rahman added. “That will require a bolder approach than we have seen so far.”

european uniontrade dealunited kingdomeuropeasiakeir starmerindia

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