![\"Indian](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/07\/c90b.jpg\")
Indian PM Narendra Modi and UK PM Keir Starmer <\/p>\n\n By<\/b>
\n
Reuters\n <\/p>\n
\n Published<\/b>
\n <\/p>\n
July 25, 2025<\/p>\n
\n India’s trade deal with Britain is a sign of New Delhi’s new gradual shift to opening up its markets while shielding crucial sectors from competition and could be its template for future agreements, government officials and analysts said on Friday.<\/p>\n
Indian PM Narendra Modi and UK PM Keir Starmer <\/p>\n
Signed on Thursday and hailed by Prime Minister Narendra Modi as “a blueprint for our shared prosperity”, the deal with the UK represents India’s biggest ever strategic partnership with an advanced economy.<\/p>\n
It comes at a time rising global trade tensions and at a pivotal moment for India’s historically protectionist trade strategy, as the Asian giant looks to strike similar deals with partners including the EU, U.S., and New Zealand.<\/p>\n
Under the pact, India notably agreed to cut tariffs on imported British vehicles, opening up competition for a domestic industry that makes up nearly 7% of the Indian economy.<\/p>\n
“This is a policy shift, especially as India has long used high tariffs to protect domestic manufacturers,” Ajay Srivastava, founder of Global Trade Research Initiative and a former Indian trade negotiator, told Reuters.<\/p>\n
The easing of its protectionist stance also applies to government procurement and pharmaceuticals and will likely be replicated in deals with Brussels and Washington, he added.\u00a0But it remains a cautious shift.<\/p>\n
The calibrated strategy aims to leverage trade for economic growth, the official said, but the government will continue to shield millions of Indians dependent upon subsistence farming and low-margin work.<\/p>\n
Indian exporters will benefit from zero tariffs on goods including textiles, footwear, gems, furniture, auto parts, machinery, and chemicals.\u00a0“With zero tariffs, India’s garment exports to the UK could double in three years,” said N. Thirukkumaran, general secretary of the Tiruppur Exporters Association.\u00a0“This also paves the way for the EU agreement, which could bring even bigger gains.”<\/p>\n