UK – India FTA to come into force on July 15th
It has been announced that the long-awaited Free Trade Agreement will come into force on July 15th.
It is calculated that the agreement, which was initially signed on 24th July 2025, will bring a £4.8bn boost to UK GDP and raise bilateral trade by £25.5bn every year in the long run.
India is already the UK's 11th largest UK trade partner with total trade falling just shy of £50bn in 2025 (£47.9bn in total). This has risen sharply over recent years and is more than double the level of trade in 2020 (total trade in 2020 was £20.9bn). For the North East specifically, in 2025 the region exported £100m to India, while importing a total of £300m.
Business and Trade Secretary Peter Kyle said:
"We are bringing our landmark trade deal with India into force as quickly as we can, because we want businesses and the public to feel the benefits immediately, including cuts to tariffs of £400m within the first year alone.
“The deal gives British exporters an edge over international competitors, and I would encourage all businesses to ensure they are properly prepared to allow them to sell to India’s huge market in the years to come.”
Trade in goods:
The FTA holds benefits and opportunities for providers and users of goods across the whole of the UK.
With regards to tariff levels when exporting to India, 64% of products will become duty-free immediately, which will rise to 90% of tariff lines after 10 years. For UK importers, 99% of Indian exports to the UK will have duty-free access, equating to a reduction in duty by £220m.
Remember, if you are looking to export to India, you will need to register with HMRC before completing the origin declaration and exporting your goods.
Trade in services and procurement:
Services already make up around 65% of all trade between the UK and India and, through the new agreement, potentially unprecedented opportunities will open up for UK businesses in the Indian market.
This agreement is the first time India have included a comprehensive government procurement chapter within a trade agreement. Through the chapter, eligible businesses will be able to bid for India's central government procurement contracts which is valued at approximately £38bn annually.
In another first for India, the agreement includes a financial services chapter which opens access to a £13.6bn market. Finally, the FTA works on developing greater certainty and opportunities for professionals, and streamlines digital trade by supporting electronic contracts and paperless commerce.
Get in touch:
This free trade agreement provides a fantastic opportunity for businesses to access this rapidly growing, developing and exciting market.
If you have any questions, would like to explore the trade agreement in more detail or, support in creating critical partnerships in India, don't hesitate to get in touch.
References:
The countdown begins: UK-India FTA enters into force on July 15th - GOV.UK
