Make UK Comment on UK-India Trade Deal
24.07.2025
The UK has signed a free trade agreement with India today which will make it cheaper to export British cars and whisky to the country.
Average tariffs for UK exports to India will drop from 15% to 3%, with whisky tariffs slashed in half from 150% to 75%.
The British goods that will see levies fall include:
- aerospace, electricals and medical devices
- cosmetics
- gin and whisky
- lamb, salmon, chocolates and biscuits
- luxury cars
The UK currently imports £11bn worth of Indian goods, but the newly agreed lower tariffs will also reduce the cost of Indian exports, including components vital to advanced manufacturing.
Additionally, Indian manufacturers are expected to gain entry into the UK market for electric and hybrid vehicles.
The agreement was greenlit by the Indian Government earlier this week but has not yet been agreed by the UK parliament. It is expected to take at least a year to come into effect.
News that a trade agreement has been signed between the UK and India is a welcome move for British industry.
“In the coming 12 months as the deal goes through Parliament, Make UK will work closely with Government to make sure it benefits all UK manufacturers and to raise awareness of how businesses, both large and small, can get the most from the deal.
