He will cement the new agreement with his Indian counterpart Narendra Modi who is in the UK on a state-visit. But the Tories said the deal was only made possible by Britain leaving the EU.

Shadow Business Secretary, Andrew Griffith, said: “This deal is only possible because of Brexit delivered by the Conservatives. Our slow learner of a Prime Minister must take note and stop capitulating to Brussels via his lopsided EU reset deal.

“Any trade deal that can successfully cut regulation which stops Britain’s makers from creating new jobs and wealth will be a step in the right direction.

“But the irony should not be lost on anyone that any gains from this trade deal will be blown out of the water by Angela Rayner‘s union charter – stifling business with red tape – the Jobs Tax, and come Autumn, Rachel Reeves’ inevitable tax hikes that will punish Britain’s makers just to reward those who do not contribute.”

Sir Keir said the deal will also attract nearly £6 billion in new investment and export wins, creating more than 2,200 British jobs across the country as Indian firms expand their operations in the UK and British companies secure new business opportunities in the economic superpower.

The UK already imports £11 billion in goods from India, but liberalised tariffs on Indian goods will make it easier and cheaper to buy their best products.

For businesses, this could mean potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods.

Sir Keir said: “Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.”

“We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.”

Under the deal India’s average tariff on UK products will drop from 15% to 3% which means British companies selling products to India from soft drinks and cosmetics to cars and medical devices will find it easier to sell to the Indian market.

Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150% to 75% and then dropped even further to 40% over the next ten years – giving the UK an advantage over international competitors in reaching the Indian market.

The two Prime Ministers have also signed a renewed Comprehensive and Strategic Partnership, which will see closer collaboration on defence, education, climate, technology and innovation.

Nik Jhangiani, Interim Chief Executive, Diageo, said: “This agreement marks a great moment for both Scotch and Scotland, and we’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured.”

William Bain, Head of Trade Policy at the BCC, said: “The signing of this agreement is a clear signal of the UK’s continuing commitment to free and fair trade. It will open a new era for our businesses and boost investment between two of the world’s largest economies.”

Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said: “Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry.

“India is the world’s biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.”