The UK and India have agreed a trade deal which locks in reductions on 90% of tariff lines, with 85% becoming fully tariff-free within a decade.
The deal, the culmination of extensive talks involving the fifth and sixth largest economies, is expected to increase bilateral trade by £25.5bn, and is the biggest signed by the UK since it left the EU five years ago.
Tariffs are to be cut across a range of industries including electrical machinery, circuits and conductors.
UK Business and Trade Secretary Jonathan Reynolds said striking a new trade deal with the “fastest-growing economy in the world” would unlock growth in advanced manufacturing in the north-east region, which is at the forefront of Net Zero and industrial technological development.
“The clean energy industry will have brand-new, unprecedented access to India’s vast procurement market as the country makes the switch to renewable energy and continues to see growing energy demand,” according to a UK government statement.
New digital commitments will support electronic contracts and transactions. These changes could particularly support small and medium-sized businesses, making it easier for them to enter the Indian market.
India is rapidly growing its green hydrogen industry and targeting 5 million tonnes a year of production by 2030.
The tie-up comes as the US is introducing global tariffs, with the UK placed in the 10% baseline tariff category.
