On Tuesday, the United Kingdom and India announced the conclusion of a long-awaited trade agreement that eliminates tariffs on Scottish whisky and various other goods.

This agreement comes after over three years of negotiations, which were previously stalled under the former British government.

Indian Prime Minister Narendra Modi described the agreement as 'ambitious and beneficial for both sides' via a statement on social media platform X. The British government has characterized the deal as a 'historic event', indicating that it will reduce import taxes on whisky, cosmetics, medical products, and automotive and aviation parts, among other British goods.

Under the terms of the agreement, tariffs on whisky and gin are set to decrease from 150% to 75%, eventually dropping to 40% by the tenth year of the agreement.

Car tariffs are also expected to fall significantly, from over 100% to 10% under a quota system.

The UK government anticipates that the agreement will lead to a long-term increase in bilateral trade by approximately £25.5 billion (approximately $34 billion) annually.

Former British Prime Minister Boris Johnson praised the official discussions, which began in 2022 regarding the free trade agreement, as a key objective following the UK's departure from the European Union in 2020. The two countries held 13 rounds of negotiations with little progress before talks were suspended amid the scheduling of general elections in both nations for 2024.

Since the negotiations resumed, Modi has been re-elected, and the UK has transitioned from a Conservative government to one led by the Labour Party under Prime Minister Keir Starmer.