The deal will see India gradually lower import taxes, with the vast majority of goods traded becoming "fully tariff-free within a decade." The U.K. government said the agreement is expected to increase bilateral trade by £25.

India and the UK agreed to a trade deal aimed at boosting economic ties between the world’s fifth and sixth-largest economies, as Washington’s disruptive tariff policies continue to reshape global trade.

The two countries signed a deal three years after negotiations began to strengthen alliances in what the British prime minister called a “new era” of trade.