The two countries hope the accord will boost trade between them by 25.5 billion pounds.

The United Kingdom and India have signed a trade agreement that will reduce tariffs on goods from textiles to whisky, cars and spices and allow more market access for businesses.

British Prime Minister Keir Starmer hailed the agreement on Thursday as a “landmark moment” for both countries. Starmer hosted Indian Prime Minister Narendra Modi at his Chequers country estate, northwest of London, where the UK and Indian trade ministers, Jonathan Reynolds and Piyush Goyal, formally signed the agreement.

Starmer and Modi announced in May that they had struck a free trade agreement after three years of stop-start negotiations, with both sides hastening efforts to clinch a deal in the shadow of tariff turmoil unleashed by United States President Donald Trump. The deal must still be ratified by the UK Parliament.

“This is not the extent or the limit of our collaboration with India,” said Starmer. “We have unique bonds of history, of family and of culture, and we want to strengthen our relationship further, so that it is even more ambitious, modern and focused on the long term.”