Britain and India clinch major trade deal in 'new era' of Trump tariffs

India's Prime Minister Narendra Modi attends the ceremonial recption of Angola's President Joao Manuel Goncalves Lourenco at the Rashtrapati Bhavan presidential palace in New Delhi, India, May 3, 2025. REUTERS/Stringer/File Photo

NEW DELHI/LONDON (Reuters) -Britain and India clinched a long-coveted free trade pact on Tuesday after tariff turmoil sparked by U.S. President Donald Trump forced the two sides to hasten efforts to increase their trade in whisky,carsandfood.

The deal, between the world's fifth and sixth largest economies, has been concluded after three years of stop-start negotiations and aims to increase bilateral trade by a further 25.5 billion pounds ($34 billion) by 2040.