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India-UK Trade Deal Promises £4.8B Boost Amid Criticism

7/25/2025

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India-UK Trade Deal

India and the UK have forged a free trade agreement expected to inject £4.8 billion into the UK economy each year. With tariffs on UK goods slashed from 15% to 3%, industries like whisky stand to gain significantly. Yet, concerns linger as critics highlight the absence of safeguards for labor rights and environmental standards, leaving the deal's future uncertain pending parliamentary approval.

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Modi Strengthens Trade

India and the UK have forged a powerful alliance with the Comprehensive Economic and Trade Agreement (CETA), signed on July 24, 2025, during Prime Minister Modi's visit. This landmark deal is set to elevate bilateral trade by $34 billion each year, slashing tariffs on 99% of goods and opening doors for textiles, engineering, and agriculture while safeguarding vital sectors.

History

Historical Context

India's economic liberalization in 1991 initiated a shift towards free-market policies, significantly boosting foreign investment. The UK-India trade relationship has since expanded, with bilateral trade projected to reach $34 billion annually following the Comprehensive Economic and Trade Agreement signed in 2025. However, concerns persist regarding labor rights and environmental protections, echoing criticisms from previous trade agreements.

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India-UK Trade Deal

India and the UK have forged a free trade agreement expected to inject £4.8 billion into the UK economy each year. With tariffs on UK goods slashed from 15% to 3%, industries like whisky stand to gain significantly. Yet, concerns linger as critics highlight the absence of safeguards for labor rights and environmental standards, leaving the deal's future uncertain pending parliamentary approval.

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