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The UK and India have struck an “ambitious” trade deal that will slash tariffs on products such as whisky and gin. 

The agreement will also see Indian tariffs cut on cosmetics and medical devices and will deliver a £4.8bn boost to the UK economy, according to the government.

It is also expected to increase bilateral trade by £25.5bn, UK GDP by £4.8bn and wages by £2.2bn each year in the long term.

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The news will be a welcome boost for the government following poor local election results, which saw Labour lose the Runcorn by-election and control of Doncaster Council to a resurgent Reform UK.

What will also be touted as a victory for Downing Street is the fact the government managed to strike a deal with India before the White House.

Speaking to reporters on Tuesday, Sir Keir Starmer hailed the “historic day for the United Kingdom and for India”.

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“This is the biggest trade deal that we, the UK, have done since we left the EU,” the prime minister said.

What trade-offs are in the ‘historic’ deal with India?


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Gurpreet Narwan

Business and economics correspondent

@gurpreetnarwan

This is the most significant trade deal Britain has negotiated since Brexit. It has been three years in the making with round the clock negotiations taking place in recent days.

Britain and India were coming from very different starting points. India’s economy is notoriously protectionist, with average tariff rates floating at around 130%. The UK, by comparison, is a very open economy. Our tariff rates hover around 5%. It means there were many prizes on offer for UK exporters, who are eyeing up a rapidly growing economy with increasingly powerful consumers.

The government will point to considerable concessions on 90% of tariff lines, 85% of them will go down to zero within the decade. It includes wins on whisky, which within ten years will be halved from the current 150%. No other country has managed to get India to move on that.

Of course there are trade-offs involved. The UK has agreed to lower tariffs on Indian textiles and apparel- a big employer in India. It will also make it easier for Indian professionals to come to the UK, something the Indians have been pushing hard on. However, there will be no formal changes to immigration policy.

Both countries have also refused to budge on certain industries. The UK has not lowered tariffs on milled rice, out of fear it could decimate native industries. The same applies to dairy for the Indians. Both sides have agreed quotas on cars for the same reason.

The Indians were pushing for an exemption for its high emission industries from the UK’s upcoming carbon tax. It is understood that will not happen.

“And it’s the most ambitious trade deal that India has ever done. And this will be measured in billions of pounds into our economy and jobs across the whole of the United Kingdom.

“So it is a really important, significant day. “

In a post on X, Indian Prime Minister Narendra Modi also welcomed the agreement as a “historic milestone” and added: “I look forward to welcoming PM Starmer to India soon.”

Negotiations for the deal relaunched in March after stalling under the Tory government over issues including trade standards and the relaxation of visa rules for Indian workers.

Overall, 90% of tariff lines will be reduced under the deal, with 85% of those becoming fully tariff-free within a decade.

Whisky and gin tariffs will be halved from 150% to 75% before falling to 40% by year ten of the deal, while automotive tariffs will go from more than 100% to 10% under a quota, the Department for Business and Trade (DBT) said.

For Indian consumers, there will be reduced tariffs on cosmetics, aerospace, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate and biscuits.

Meanwhile, British shoppers could see cheaper prices and more choice on products including clothes, footwear, and food products including frozen prawns as the UK liberalises tariffs.

India’s trade ministry said that under the deal, 99% of Indian exports will benefit from zero duty, Britain will remove a tariff on textile imports and Indian employees working in the UK will be exempt from social security payments for three years.

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Shadow trade secretary Andrew Griffith added: “It’s good to see the government recognise that reducing cost and burdens on businesses in international trade is a good thing, and that thanks to Brexit we can do.

“But it would be even better if they would apply the same reasoning to our domestic economy, where they remain intent on raising taxes, energy costs and regulatory burdens.”

The news was also welcomed by business group the British Chamber of Commerce, which said it was a “welcome lift for our exporters”.

William Bain, head of trade policy, said:  ”Against the backdrop of mounting trade uncertainty across the globe, these tariff reductions will be a big relief. Products from Scotch whisky to clothing will benefit and this will give UK companies exporting to India a clear edge on increasing sales.

“The proposals for a follow-up investment treaty will also provide a solid platform to grow manufacturing and other sectors in our two economies.”

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Tens of thousands killed in two days in Sudan city, analysts believe

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Tens of thousands killed in two days in Sudan city, analysts believe

Tens of thousands of people have been killed in the Sudanese city of Al Fashir by the Rapid Support Forces (RSF) in a two-day window after the paramilitary group captured the regional capital, analysts believe.

Sky News is not able to independently verify the claim by Yale Humanitarian Labs, as the city remains under a telecommunications blackout.

Stains and shapes resembling blood and corpses can be seen from space in satellite images analysed by the research lab.

Al Fashir University. Pic: Airbus DS/2025
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Al Fashir University. Pic: Airbus DS/2025

Al Fashir University. Pic: Airbus DS/2025
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Al Fashir University. Pic: Airbus DS/2025

Nathaniel Raymond, executive director of Yale Humanitarian Labs, said: “In the past 48 hours since we’ve had [satellite] imagery over Al Fashir, we see a proliferation of objects that weren’t there before RSF took control of Al Fashir – they are approximately 1.3m to 2m long which is critical because in satellite imagery at very high resolution, that’s the average length of a human body lying vertical.”

Mini Minawi, the governor of North Darfur, said on X that 460 civilians have been killed in the last functioning hospital in the city.

The Sudan Doctors Network has also shared that the RSF “cold-bloodedly killed everyone they found inside Al Saudi Hospital, including patients, their companions, and anyone else present in the wards”.

World Health Organisation (WHO) chief Dr Tedros Adhanom Ghebreyesus said it was “appalled and deeply shocked” by the reports.

Satellite images support the claims of a massacre at Al Saudi Hospital, according to Mr Raymond, who said YHL’s report detailed “a large pile of them [objects believed to be bodies] against a wall at one building at Saudi hospital. And we believe that’s consistent with reports that patients and staff were executed en masse”.

In a video message released on Wednesday, RSF commander Mohamed Hamdan Dagalo acknowledged “violations in Al Fashir” and claimed “an investigation committee should start to hold any soldier or officer accountable”.

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Army soldiers ‘fled key Sudan city’ before capture

The Saudi Maternity Hospital in Al Fashir. Pic: Airbus DS /2025 via AP
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The Saudi Maternity Hospital in Al Fashir. Pic: Airbus DS /2025 via AP

The commander is known for committing atrocities in Darfur in the early 2000s as a Janjaweed militia leader, and the RSF has been accused of carrying out genocide in Darfur 20 years on.

Sources have told Sky News the RSF is holding doctors, journalists and politicians captive, demanding ransoms from some families to release their loved ones.

One video shows a man from Al Fashir with an armed man kneeling on the ground, telling his family to pay 15,000. The currency was not made clear.

In some cases, ransoms have been paid, but then more messages come demanding that more money be transferred to secure release.

Muammer Ibrahim, a journalist based in the city, is currently being held by the RSF, who initially shared videos of him crouched on the ground, surrounded by fighters, announcing his hometown had been captured under duress.

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He is being held incommunicado as his family scrambles to negotiate his release. Muammer courageously covered the siege of Al Fashir for months, enduring starvation and shelling.

The Committee to Protect Journalists regional director Sara Qudah said the abduction of Muammar Ibrahim “is a grave and alarming reminder that journalists in Al Fashir are being targeted simply for telling the truth”.

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At least 30 killed after ‘unprecedented’ Hurricane Melissa ravages through Caribbean

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At least 30 killed after 'unprecedented' Hurricane Melissa ravages through Caribbean

At least 30 people have died after Hurricane Melissa tore through the Caribbean on Wednesday.

The Red Cross said early indications show the storm has been a “disaster of unprecedented catastrophe”.

Storm Melissa has so far ravaged through Jamaica, Haiti, the Dominican Republic and Cuba.

At least 34 are estimated to be dead in the Caribbean, with eight of those in Jamaica, one in the Dominican Republic and 25 in Haiti.

This was down from a previously reported 40.

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‘Unimaginable’ destruction of Hurricane Melissa

‘Heartbreaking’ aerial footage reveals scale of destruction

Later on Wednesday, the Jamaican government confirmed four people – three men and one woman – had been killed. This figure later rose to eight.

Local government minister, Desmond McKenzie, said: “They were discovered after being washed up by the flood waters generated by the hurricane.”

Devastating aerial footage shows towns destroyed by the storm.

The Jamaican prime minister, Andrew Holness, travelled to St Elizabeth, where the first deaths were reported, to inspect the storm’s impact.

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Sharing aerial footage of battered homes, he wrote: “The damage is great, but we are going to devote all our energy to mount a strong recovery.”

The storm made landfall in Cuba in the early hours of Wednesday morning before leaving mid-afternoon, heading towards the Bahamas.

Hurricane Melissa has ravaged through the Caribbean. Pic: Reuters
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Hurricane Melissa has ravaged through the Caribbean. Pic: Reuters

‘Whole communities are underwater’

Alexander Pendry, British Red Cross global response manager, said: “News is already coming through that whole communities are underwater and that the damage left by the strong winds has been devastating.

“The Jamaica Red Cross has been proactively supporting communities by preparing essential supplies and managing shelters. Their priority now is to reach people with aid as soon as possible.

“Across the Caribbean, Red Cross teams have been mobilising as Melissa continues its trajectory across Cuba, Dominican Republic and Haiti.”

He added: “Tragically, experience tells us that the impact on communities and individuals will be shattering and long lasting.

“We will be here for as long as people need us.”

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Suspects arrested over Louvre heist ‘partially admit involvement’ – as officials address inside job theory

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Suspects arrested over Louvre heist 'partially admit involvement' - as officials address inside job theory

The two suspects arrested over the Louvre jewellery heist have “partially” confessed to their involvement in the robbery, according to a prosecutor.

Paris prosecutor Laure Beccuau revealed the development at a news conference on Wednesday.

Four thieves stole nine items – one of which was dropped and recovered at the scene – in a heist pulled off while the world-famous Paris museum was open to visitors on 19 October.

It took the thieves less than eight minutes to steal the jewels. They forced open a window and cut into cases with power tools after gaining access via a vehicle-mounted mechanical lift.

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Suspects in Louvre robbery ‘partially confessed’

Ms Beccuau also said the jewels had not yet been recovered.

“These jewels are now, of course, unsellable,” said Ms Beccuau. “Anyone who buys them would be guilty of concealment of stolen goods. It’s still time to give them back.”

‘No evidence’

Ms Beccuau also addressed reports that police believe the robbery could have been an inside job.

She said that there was “no evidence the thieves benefited from inside help”.

Under French rules for organised theft, custody can run up to 96 hours. That limit is due to expire late on Wednesday, and prosecutors must charge the suspects, release them or seek a judge’s extension.

Paris prosecutor Laure Beccuau speaks during a press conference about the investigation into the Louvre robbery. Pic: Reuters
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Paris prosecutor Laure Beccuau speaks during a press conference about the investigation into the Louvre robbery. Pic: Reuters

One suspect is a 34-year-old Algerian national who has been living in France since 2010, Ms Beccuau said. He was arrested Saturday night at Charles de Gaulle airport as he was about to fly to Algeria with no return ticket.

Ms Beccuau said that he was living in the Paris suburb of Aubervilliers, and was known to police mostly for road traffic offences.

The other suspect, 39, was arrested Saturday night at his home in Aubervilliers.

“There is no evidence to suggest that he was about to leave the country,” said Ms Beccuau.

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Louvre jewels ‘have not returned’

The man was known to police for several thefts, and his DNA was found on one of the glass cases where the jewels were displayed, and on items the thieves left behind, she added.

Earlier, French police acknowledged major gaps in the Louvre’s defences.

Paris police chief Patrice Faure told politicians that ageing security systems had left weak spots.

“A technological step has not been taken,” he said.

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Mr Faure also revealed that the Louvre’s authorisation to operate its security cameras quietly expired in July and had not been renewed.

He said the first alert to police came not from the Louvre’s alarms, but from a cyclist outside who dialled the emergency line after seeing helmeted men with a basket lift.

Members of a forensic team inspect a window believed to have been used by the culprits. Pic: Reuters
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Members of a forensic team inspect a window believed to have been used by the culprits. Pic: Reuters

Mr Faure also rejected calls for a permanent police post inside the museum, warning it would set an unworkable precedent and do little against fast and mobile thieves.

“I am firmly opposed,” he said. “The issue is not a guard at a door; it is speeding the chain of alert.”

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