British PM Keir Starmer calls India-UK Free Trade Agreement ‘fantastic deal’. What's on plan?

British Prime Minister Keir Starmer hailed the newly finalised Free Trade Agreement (FTA) with India as a “fantastic” accomplishment. He also aimed at the Opposition Conservative Party, criticising them for proposing to “rip up” the deal, PTI reported.

Here are the top five updates:

1. Speaking during the weekly Prime Minister’s Questions (PMQs) session in the House of Commons, Starmer highlighted the Labour government’s success in concluding the FTA talks with India last week—something the Conservatives were unable to accomplish during their eight years in power.

2. As reported by PTI, Starmer locked horns with Opposition Leader Kemi Badenoch over the Labour government’s employment and business record. “The India deal is a fantastic deal, with tariffs on cars cut to 10 per cent, tariffs halved on whisky and gin, and GBP 4.8 billion coming into our economy. What does she [Badenoch] say she would do with the India deal? She wants to rip it up,” he said.

3. According to the UK’s Department for Business and Trade (DBT), the FTA agreed on May 6 is expected to add an extra GBP 25.5 billion annually in the long run to the current two-way trade of GBP 41 billion. It has highlighted a cut in Scotch whisky tariffs, from 150 per cent down to half and then eventually even lower to 40 per cent, and automotive quotas among the big wins for British business.

4. India has secured zero-duty market access for all industrial goods upon the implementation of the Free Trade Agreement. This includes sectors such as leather, footwear, textiles and apparel, gems and jewellery, base metals, furniture, sports equipment, auto and transport components, chemicals, wood and paper products, mechanical and electrical machinery, and minerals. Currently, these products face UK tariffs ranging from 4% to 16%.

5. However, certain sensitive agricultural products—including dairy, apples, cheese, oats, and animal and vegetable oils—are excluded from the agreement, meaning India will not offer any tariff concessions on these items to the UK. Similarly, several sensitive industrial products such as plastics, diamonds, silver, base stations, smartphones, television camera tubes, optical fibres, and related cables are also excluded from tariff reductions.

(With inputs from agencies)