UK–India Free Trade Agreement now in force

15 July 2026

 

The UK–India Free Trade Agreement (FTA) has officially entered into force today, opening the door to reduced tariffs, improved market access and new commercial opportunities for businesses trading between the two countries.

As one of the UK's most significant trade agreements since leaving the European Union, the FTA is expected to increase bilateral trade by £25.5 billion annually in the long term while making it easier for businesses to trade goods and supply services between the UK and India.

For UK exporters, the agreement introduces reduced or eliminated tariffs across a wide range of products, helping businesses become more competitive in one of the world's fastest-growing major economies. UK importers may also benefit from lower tariffs on a range of Indian goods, creating new sourcing opportunities and helping to manage costs.

Alongside the FTA, the UK–India Double Contributions Convention also comes into force today, helping reduce social security costs for eligible businesses and employees working across both countries.

Businesses should prepare to claim the benefits

While the agreement is now operational, businesses will only be able to benefit from preferential tariff rates if they meet the agreement's requirements.

To claim reduced or zero tariffs, businesses should ensure they:

  • Understand the agreement's Rules of Origin.
  • Correctly determine whether their goods qualify for preferential treatment.
  • Complete the required origin declarations.
  • Maintain appropriate supporting evidence and records.
  • Review customs procedures and internal processes before claiming preferences.

Without the correct documentation, businesses may be unable to claim the preferential tariff rates available under the agreement.

Learn how to maximise the opportunities

For businesses already trading with India—or considering entering the market—understanding how the agreement works will be essential to making the most of the opportunities it creates.

To help businesses prepare, we are running a practical online workshop, The UK–India Free Trade Agreement (FTA): What Businesses Need to Know, on 3 September 2026.

The workshop will explain how to:

  • Identify products that qualify for preferential tariffs.
  • Apply the Rules of Origin.
  • Complete origin declarations correctly.
  • Understand customs and documentary requirements.
  • Avoid common compliance errors when trading with India.

Whether you already trade with India or are exploring the market for the first time, the workshop provides practical guidance to help your business benefit from the new agreement with confidence.

The FTA marks an important step forward in UK–India trade relations, but businesses that understand the agreement's requirements will be best placed to take advantage of the opportunities it offers.

 

By Carla Assunção, Chamber International

 

Want to understand how the UK–India Free Trade Agreement could benefit your business? Join our online workshop on 3 September and learn how to maximise the opportunities while remaining fully compliant. Find out more and reserve your place.