The United Kingdom and India have finalised a long-awaited free trade agreement after three years of on-and-off negotiations. The pact aims to boost bilateral trade by approximately 34 billion dollars—by the year 2040. Advertisment It"s Britain"s most substantial trade agreement since Brexit and signals India"s increasing willingness to open its markets, particularly in sectors like automobiles, food, and whisky. The deal was concluded following last-minute ministerial talks in London, and reflects both nations" urgency amid global trade uncertainty heightened by US tariff actions. The UK prime minister, Keir Starmer said, "Well, this is a historic day for the United Kingdom and for India, because this is the biggest trade deal that we the UK have done since we left the EU - and it's the most ambitious trade deal that India has ever done. And this will be measured in billions of pounds into our economy and jobs across the whole of the United Kingdom. So, it is a really important, significant day." UK–India seal free trade agreement AdvertismentUnder the agreement, whisky tariffs will be reduced from 150 to 75 per cent immediately, and eventually lowered to 40 per cent over the next decade. Auto tariffs—currently over 100 percent—will drop to 10 per cent under a controlled quota system. The UK will cut tariffs on 90 per cent of its goods, while 99 per cent of Indian exports, including textiles, will benefit from zero duty. British firms will also gain expanded access to Indian government contracts, and new rules of origin provisions will make it easier for manufacturers using global inputs to qualify for lower tariffs. The deal includes a social security agreement to prevent double contributions by temporarily posted workers, and modest improvements in professional mobility. However, it does not affect student visas, nor does it alter the UK"s broader immigration policy. Advertisment Critics have raised concerns about labour provisions, but UK trade officials maintain that the changes are balanced and necessary. While legal services were excluded, talks on a separate bilateral investment treaty—covering financial services—will continue. Business groups welcomed the deal, calling it a rare positive sign amid rising global protectionism. (With inputs from the agencies)