May 08 2025
UK-India trade deal agreed
On 6 May 2025, the UK’s Department for Business and Trade confirmed that an agreement has been reached on a new trade deal between the UK and India.
The Department for Business and Trade estimates that the deal will increase bilateral trade by £25.5 billion, add £4.8bn annually to the UK’s economy, and boost wages by £2.2bn each year in the long run. This, it says is ‘the best deal that any country has ever agreed with India’.
In 2024, India was the UK’s 12th largest trading partner, with total trade worth £43bn. India has also recently risen to become the fifth-largest economy in the world, and is expected to grow to the third-largest by 2028, according to the International Monetary Fund (IMF).
It was confirmed on 24 February 2025 that negotiations towards a trade deal between the UK and India had been resumed. This was after the previous UK government entered negotiations with India in 2022, but no agreement was reached.
With a deal now having been agreed, Jonathan Reynolds MP, UK secretary of state for the Department for Business and Trade, wrote in a post on social media platform X: “Our landmark agreement with India is the largest ever trade deal secured by the UK. This deal will help deliver our Plan for Change, putting more money in working people’s pockets, boosting our economy and bolstering British business.” Read more
Source: LOGISTICS MANAGER