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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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‘At least 16’ killed in latest Israeli attacks on Gaza – as 10 children arrive in UK for NHS treatment

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'At least 16' killed in latest Israeli attacks on Gaza - as 10 children arrive in UK for NHS treatment

At least 16 people are said to have died overnight in Israeli attacks in Gaza – as the first group of 10 children arrived in the UK for urgent NHS treatment.

Officials said more than half of those killed in the latest attacks were in Gaza City, where Israel this week began a major ground offensive.

A mother and her child died at an apartment in the city’s Shati refugee camp, according to the Shifa hospital.

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Sky News analysis shows major escalation in Gaza war

The al-Adwa and Nasser hospitals said other victims included a pregnant woman – among three killed when a house was hit in the Nuseirat refugee camp in central Gaza – and two parents and their child in the Muwasi area west of Khan Younis.

The Israel Defence Forces (IDF) launched its ground assault on Tuesday, in what it called a “new phase” in its bid to destroy Hamas and force the release of the remaining hostages.

It said it was looking into the deaths caused by the latest strikes.

Troops and tanks continued to push deeper into Gaza City on Wednesday despite widespread condemnation of the attempt to take full control of the city.

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UK Foreign Secretary Yvette Cooper has called the operation “utterly reckless and appalling”.

Ms Cooper – who last night helped greet the pro-Israel President Trump – said it would “only bring more bloodshed, kill more innocent civilians & endanger the remaining hostages”.

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Is Israel committing genocide?

Meanwhile, 10 critically ill and injured children from Gaza have arrived in Britain for medical care alongside 50 companions, the World Health Organisation said on Wednesday.

It said they were first evacuated to Jordan and that “robust” security checks were undertaken before the group got approval to travel.

The foreign secretary said the children were “unable to get the medical care they need to survive” in Gaza.

More are expected to arrive in the coming weeks, in what Health Secretary Wes Streeting said “reflects the very best of our NHS values – compassion, care and expertise when it matters most”.

A small number of children were previously brought to the UK and are being treated privately through the Project Pure Hope initiative.

Smoke rises from Gaza after an explosion, as seen from Israel. Pic: Reuters
Image:
Smoke rises from Gaza after an explosion, as seen from Israel. Pic: Reuters

It comes as a coalition of aid groups today urged the international community to do more to stop Israel’s attacks, which it said had caused “an unprecedented humanitarian catastrophe”.

“States must use every available political, economic, and legal tool at their disposal to intervene. Rhetoric and half measures are not enough. This moment demands decisive action,” said a statement signed by the heads of more than 20 organisations working in Gaza.

The call comes a day after a UN commission said Israel was committing genocide in Gaza – a claim the country vehemently denies as “distorted and false”.

Sky News analysis shows thousands of families remain in crowded tent camps in Gaza City, with the UN estimating last week that a million people remain there. Israel, however, believes 40% of the population has already fled south.

Displaced Palestinians are fleeing northern Gaza as the new offensive escalates. Pic: Reuters
Image:
Displaced Palestinians are fleeing northern Gaza as the new offensive escalates. Pic: Reuters

Many are taking what little they can and attempting the perilous journey south after Israel warned them to evacuate ahead of it new offensive.

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The IDF said another route south for those fleeing would open from noon local time on Wednesday, running along Salah al-Din street along Gaza’s coastline, for two days.

Israel has not said how long its Gaza City operation will last, but that it will involve both air and ground forces and the number of soldiers will increase over the coming days.

It insists it takes strenuous efforts to issue warnings and avoid civilian casualties, but that it’s complicated by Hamas deliberately embedding itself in civilian areas.

Health officials in Gaza say nearly 65,000 people have died in the two years of the war – a figure that does not specify the number of Hamas members killed.

The terror attack on Israel in October 2023 killed around 1,200 and saw 251 taken hostage. Forty-eight remain in Gaza, but fewer then half are though to still be alive.

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Pressure mounts on PM to raise Israel’s Gaza offensive with Trump

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Pressure mounts on PM to raise Israel's Gaza offensive with Trump

Sir Keir Starmer is under mounting pressure to raise Israel’s bombardment of Gaza with Donald Trump during his UK state visit, after a UN Commission said a genocide was taking place.

Liberal Democrat leader Sir Ed Davey used the president’s arrival on Tuesday night to call for action on the escalating situation, as Israeli forces advance in Gaza City.

Sky News analysis has found thousands of families remain in the city’s crowded tent camps, despite a ground offensive beginning yesterday.

Sir Ed, who is boycotting the state dinner being held for Mr Trump, said Sir Keir must “press” the president now.

He said: “What is happening in Gaza is a genocide. And the president of the United States, who wants a Nobel Peace Prize, is doing nothing to stop it.”

Displaced Palestinians flee northern Gaza. Pic: AP
Image:
Displaced Palestinians flee northern Gaza. Pic: AP

On Tuesday, a United Nations Commission agreed Israel was committing genocide in Gaza – the first time such an explosive allegation has been made publicly by a UN body.

Israel‘s foreign ministry said it “categorically rejects this distorted and false report” and called for the commission to be abolished.

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Is Israel committing genocide?

‘We cannot be bystanders’

Reports suggest the situation will be a talking point between Sir Keir and Mr Trump during his visit.

It comes before the UK is due to recognise a Palestinian state at the UN General Assembly later this month, along with allies including Canada and France.

In a late night statement, Canada’s foreign ministry described the Gaza City offensive as “horrific”.

Lib Dem leader Sir Ed added: “We have long said that Hamas is genocidal and condemned them for their actions.

“Now, I think we have to say that what the Netanyahu government is doing amounts to genocide.”

Labour MP Rosena Allin-Khan, a former shadow minister, also called on her party leader to make discussing the situation in Gaza with Mr Trump a “top priority”.

Speaking to Sky News’ Politics Hub With Sophy Ridge, she said: “We say ‘never again’ when we look at Bosnia and Rwanda, but here we are again, and it’s been livestreamed, and we’ve all seen it.

“We cannot be bystanders to a genocide.”

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‘We cannot be bystanders’

UN report pulls no punches

The accusation of genocide is made by the UN Independent International Commission of Inquiry on the Occupied Palestinian Territory.

It alleges Israel has been “killing Palestinians or forcing them to live in inhumane conditions that led to death; causing serious bodily or mental harm, including through torture, displacement and sexual crime; deliberately imposing inhumane conditions, and fourthly, imposing measures intending to prevent births”.

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Earlier this month, the International Association of Genocide Scholars also passed a resolution stating that Israel’s conduct passed the threshold of committing genocide.

However, a report from the British government said it had “not concluded” that Israel intended to “destroy in whole or in part a national, ethnic, racial or religious group”.

Nearly 65,000 people are now believed to have died, according to figures collated by Gaza’s Hamas-run health ministry. It does not distinguish between civilians and combatants in its count.

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Thousands of families remain in Gaza City as Israeli army advances

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Thousands of families remain in Gaza City as Israeli army advances

As the Israeli army advances on Gaza City, thousands of families remain in the city’s crowded tent camps.

Sky News analysis of satellite imagery taken on Monday 15 September shows tent camps stretching across the western half of the city.

A close-up view shows one camp spilling out on to the city’s beaches.

Tents on the Gaza City beachfront on 15 September 2025. Pic: Planet Labs PBC
Image:
Tents on the Gaza City beachfront on 15 September 2025. Pic: Planet Labs PBC

The Israel Defence Forces (IDF) launched its ground assault overnight on Tuesday 16 September, in what the military said was a “new phase” in its offensive.

“Gaza is burning,” defence minister Israel Katz posted on X as the operation began. “IDF soldiers are fighting bravely to create the conditions for the release of the hostages and the defeat of Hamas.”

UK Foreign Secretary Yvette Cooper described the offensive as “utterly reckless and appalling”, adding that it “will only bring more bloodshed, kill more innocent civilians & endanger the remaining hostages”.

Footage verified by Sky News shows Israeli tanks entering the Gaza Strip from the north overnight on Tuesday.

Israeli soldiers later filmed themselves in an area just north of Gaza City.

Satellite imagery taken a day earlier shows that while some tent camps in the area have been abandoned in the past few days, many others have not.

The IDF advance comes after an intense week of airstrikes targeting buildings in Gaza City. Sky News has verified dozens of videos showing strikes on buildings across the city.

Several of these strikes destroyed entire tower blocks, such as this strike on Al Ghafari Tower.

At least 50 people were killed across the Gaza Strip on Tuesday, health officials said, most of them in Gaza City.

The IDF said it estimated 40% of people in Gaza City had fled south, while Hamas said that only 190,000 out of 1.3 million residents had left (15%).

An evacuation order for the entire city was first issued on 9 September, with a map on 13 September instructing Palestinians to flee to what Israel has designated a “humanitarian area” along a stretch of sandy coastline known as Al Mawasi.

Satellite imagery from Sunday 14 September shows that the area is already crowded with tents.

Tents in the IDF-designated Al Mawasi humanitarian zone on 14 September 2025. Pic: Planet Labs PBC
Image:
Tents in the IDF-designated Al Mawasi humanitarian zone on 14 September 2025. Pic: Planet Labs PBC

Last week, the UN’s Gaza humanitarian country team said that “neither the size nor scale of services provided is fit to support those already there, let alone new arrivals”.

Those fleeing south face a journey of at least 15km (9.3 miles), much of it through Israeli-designated combat zones. Local health officials said at least one vehicle travelling south from Gaza City had been hit by an Israeli strike.

Among those staying put on Tuesday was Um Mohammad, who lives in the Sabra neighbourhood of Gaza City.

“It is like escaping from death towards death, so we are not leaving,” she said.

The IDF says the next stage of the operation will involve both air and ground forces, and that the number of soldiers involved will increase over the coming days.

Additional reporting by Sam Doak, OSINT producer.


The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

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