India and the UK agreed a trade deal aimed at boosting economic ties between the world’s fifth and sixth-largest economies, as Washington’s disruptive tariff policies continue to reshape global trade.
“The conclusion of a balanced, equitable and ambitious FTA, covering trade in goods and services, is expected to significantly enhance bilateral trade, generate new avenues for employment, raise living standards, and improve the overall well-being of citizens in both countries,” the Indian government said in a statement Tuesday. “It will also unlock new potential for the two nations to jointly develop products and services for global markets.”
The deal is a critical one for UK Prime Minister Keir Starmer and his Indian counterpart Narendra Modi as countries globally race to insulate themselves from the fallout of US President Donald Trump’s tariff wars. For India, the deal burnishes its credentials as an emerging destination among investors looking to diversify away from China.
