UK and India Strike Trade Deal—Because Nothing Says ’Post-Colonial Harmony’ Like Tariff Haggling

London and New Delhi finally ink a free trade agreement after two years of negotiations—just in time for both economies to pretend they’re not flirting with recession.

Key takeaways: Lower tariffs on whisky, pharmaceuticals, and IT services. Because nothing unites nations like shared interests in getting drunk, staying healthy, and outsourcing customer support.

The real winner? Hedge funds positioning GBP/INR volatility plays—because someone’s gotta profit while politicians take victory laps.

UK and India Reach Major Free Trade Agreement

In early April, and on the heels of the United States’ America-First tariff plan, UK Prime Minister Keir Starmer expressed his willingness to reach a new trade agreement with the Western nation. Indeed, he was clear in his resolve to negotiate a deal that would benefit both sides.

That statement has held even more weight on Tuesday as the UK and India have unveiled a landmark free trade agreement. Specifically, both nations have ended a three-year negotiation to reach a deal that will be massively beneficial to both sides.

As recently as May 3rd, reports surfaced that a UK and India trade deal had not been reached. Indeed, after talks ceased in London this past weekend, there were concerns about when those discussions would conclude. Not even a week later, and both sides.

The agreement is set to boost trade by an additional $34 billion a year by 2040, a report said. Moreover, the Department of Business noted that the agreement will benefit UK consumers due to the clear reduction in tariffs. Moreover, they claimed that the deal will also create clear economic growth and job creation through expanded exports into India.