Britain and India will sign a historical free trade agreement today on Thursday during a visit to the Indian Prime Minister Narendra Montisealing an agreement to reduce tariffs on products, from textiles to whiskey and cars, and allowing more market access to businesses.

As the agency reports Reutersthe two countries completed talks on the coveted Free Trade Agreement in May, after three years of “Stop-Start” negotiations, with both sides accelerating efforts to reach an agreement in the shadow of tariff turmoil that the US President triggered Donald Trump.

The agreement between the world and the sixth largest economy in the world aims to increase bilateral trade by £ 25.5 billion ($ 34 billion) in addition to 2040. It will come into force after being approved by the British Parliament and the Federal Council of Ministers.

“Our historical trade agreement with India is an important victory for Britain. Will create thousands of British jobs across the United Kingdom, unlock new business opportunities and give growth to growth. “ said the British Prime Minister Star star.

The agreement will be signed during Mody’s fourth visit to the United Kingdom since he took on his duties in 2014. Leaders will also sign a strategic partnership that covers areas such as defense and climate, and will enhance co -operation to combat crime.

According to the trade agreement, duties in Scottish whiskey will be reduced to 75% from 150% immediately and then reduced to 40% over the next decade, according to the British government. In cars, India will reduce duties to 10% from over 100%, in the context of a gradual quota system.

In return, Indian manufacturers are expected to gain access to the UK market for electric and hybrid vehicles, also in the context of a quota system, Indian Ministry of Commerce officials said.

The ministry said that 99% of Indian exports to Britain would benefit from zero duties under the agreement, including textile products, while Britain will see reductions in 90% of its tariff classes.

Agreement represents Britain’s most important trade agreement since leaving the EU In 2020, although the projected impetus to British economic production of £ 4.8 billion annually by 2040 is small compared to the country’s gross domestic product of £ 2.6 trillion in 2024.

The deal will also facilitate access to temporary professional visitors, although visas will not be covered. Britain and India have also agreed to ensure that workers will no longer have to pay social security contributions to both India and Britain during temporary secondments to the other country.

According to the trade agreement, British companies will have access to the India supplies market for projects in areas such as net energy, while also covering sectors of services such as insurance.

India has not succeeded in providing the British CBAM exception – which could impose higher taxes on polluting in 2027 – under the agreement.

The two sides have also not completed the talks on a separate bilateral investment treaty, which have been held alongside the trade negotiations but will continue.