Negotiations began over three years ago, but had essentially come to a complete standstill until the USA started threatening with trade tariffs in February.
The agreement means that India is significantly reducing import tariffs on British goods like whisky, gin, cosmetics, and medical equipment. Car tariffs are falling from 100 to 10 percent. In the other direction, British tariffs on clothes, shoes, and food products from India are being reduced.
Last year, trade between the UK and India was valued at 41 billion pounds, equivalent to 525 billion kronor. Downing Street claims that the agreement will add 25.5 billion pounds in trade value by 2040 and calls it "the best deal India has made".
India's Prime Minister Narendra Modi describes the agreement as "ambitious and mutually beneficial".
