The prime ministers of Britain and India have sealed a major trade agreement that will reduce tariffs on products like Scotch whisky and Indian spices.

India's trade deal with Britain is a sign of New Delhi's new gradual shift to opening up its markets while shielding crucial sectors from competition and could be its template for future agreements, government officials and analysts said on Friday.

India and the UK signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, which is expected to revitalise India’s textile sector by providing a much-needed level playing field with competitors such as Bangladesh,