UK–India Free Trade Agreement to enter into force on 15 July

17 June 2026

 

The UK Government has confirmed that the UK–India Free Trade Agreement (FTA) will enter into force on 15 July 2026, marking a significant milestone in trade relations between two of the world's largest economies.

The deal is expected to create new opportunities for UK exporters and importers by reducing tariffs, improving market access and making it easier for businesses to trade between the two countries. It is also one of the most significant trade agreements signed by the UK since leaving the European Union.

In addition to benefits for goods trade, the FTA includes provisions designed to improve access for a range of UK service providers operating in the Indian market.

According to the UK Government, the agreement could increase bilateral trade between the UK and India by £25.5 billion annually in the long term and boost UK GDP by almost £5 billion.

For UK exporters, the agreement offers substantial tariff reductions across a wide range of sectors.

Potential benefits include:

  • Reduced tariffs on UK exports entering India
  • Improved market access for food and drink products, including Scotch whisky
  • Lower tariffs on automotive exports
  • Enhanced opportunities for manufacturers and industrial exporters
  • Improved competitiveness in one of the world's fastest-growing major economies

The UK Government has stated that India will remove or reduce tariffs on 90% of tariff lines, covering the vast majority of current UK goods exports to India. Import duty savings for UK exporters are estimated at around £400 million initially, rising to approximately £900 million over the next decade.

For UK importers, the agreement will reduce tariffs on a range of Indian products, potentially creating new sourcing opportunities and helping businesses manage costs.

Products expected to benefit include:

  • Clothing and textiles
  • Footwear
  • Food products
  • Industrial and manufactured goods

Alongside the FTA, the UK and India will also bring into force a Double Contributions Convention, designed to reduce social security costs for businesses operating across both countries.

Businesses intending to benefit from preferential tariff rates should review product classifications, Rules of Origin requirements and supporting documentation ahead of implementation. Goods will generally need to meet the agreement's origin requirements in order to qualify for reduced or zero tariffs.

For businesses already trading with India, or considering entering the market, the coming weeks provide an opportunity to review supply chains, customs procedures and export documentation requirements ahead of implementation.

The agreement is expected to strengthen commercial ties between the UK and India while creating new opportunities for businesses seeking to expand trade between the two markets.

 

By Carla Assunção, Chamber International

 

We can help businesses understand free trade agreements, Rules of Origin and the documentation required to claim preferential tariff treatment. Speak to our team.

Businesses looking to maximise the benefits of free trade agreements may also be interested in our Rules of Origin Workshop on 2 July 2026. Find out more and reserve your place.