UK-India mega trade deal includes clothing, cosmetics, more creative copyright protection

May 08, 2025

Category: General

Country: India

Region: Asia

India and the UK on Tuesday announced a long-hoped-for free trade pact, in a mega-deal that’s Britain’s biggest post-Brexit agreement. It was signed and sealed in the shadow of US President Donald Trump's tariff rises.

By Sandra Halliday
6th May, 2025.
Reading time: 2 minutes

The deal sees the world's fifth and sixth-biggest economies finally reaching agreement after three years of on-off talks with the aim being to increase trade between the two by a further £25.5 billion by 2040.

It should mean easier market access for both countries and fewer trade restrictions.

Indian Prime Minister Narendra Modi said the deal should "catalyse trade, investment, growth, job creation, and innovation in both our economies,”

The deal lowers tariffs on a vast range of goods including cosmetics, whisky, advanced manufacturing parts and certain foods.

The UK government said British shoppers “could see cheaper prices and more choice on products including clothes [and] footwear [as the] UK liberalises tariffs.

Importantly too, there will also be enhanced copyright protections for the creative sector that “will give exporters confidence thanks to a commitment that their work will continue to be protected for at least 60 years”.

“We are now in a new era for trade and the economy. That means going further and faster to strengthen the UK's economy,” British PM Keir Starmer said. “Strengthening our alliances and reducing trade barriers with economies around the world is part of our plan for change to deliver a stronger and more secure economy here at home.”

India has long been one of the most protectionist markets but with its massive population it’s also one that’s a key target for many Western firms.

Talks between the UK and India began under the Conservative government in January 2022 after Brexit raised barriers to EU trade and also saw Britain negotiating its own deals for the first time in decades.

Both countries are also continuing to seek deals with the US to lessen the impact of president Trump’s tariffs. While the US hopes such tariffs will boost its domestic manufacturing and will encourage other countries to make deals with America, they’ve also underlined the urgency for other countries to make deals with each other.