UK–India trade agreement gains momentum as ministers announce new measures to support businesses

14 October 2026

 

The UK and India have announced further steps to help businesses benefit from their Free Trade Agreement, following high-level ministerial talks in New Delhi on 12 October 2026.

At the 16th meeting of the UK–India Joint Economic and Trade Committee (JETCO), ministers agreed measures to improve the implementation of the agreement, address practical trading difficulties and strengthen commercial cooperation between the two countries.

The discussions mark an important development for UK businesses looking to expand into India, with both governments now focusing on ensuring that the agreement delivers tangible benefits for exporters and importers.

Early signs of the agreement delivering

The UK–India Comprehensive Economic and Trade Agreement (CETA), which entered into force on 15 July 2026, is already being used by businesses in both countries.

According to the joint ministerial statement, early examples include:

  • The first tariff-free Scottish salmon shipments reaching India within a fortnight of the agreement taking effect, with several thousand kilos exported since

  • Scotch whisky entering the Indian market under reduced tariffs

  • The first UK cars clearing Indian customs under the agreement's tariff-rate quota

  • More than 50 Indian export consignments sent to the UK on the first day, including electronics, machinery, clothing, jewellery, tea and coffee

These early transactions demonstrate how businesses are beginning to take advantage of the agreement's new trading arrangements.

New commitments to help businesses access trade benefits

One of the most significant outcomes of the meeting was an agreement to exchange annual data on how businesses are using CETA, beginning one year after its entry into force.

This will include information on the uptake of preferential tariffs, alongside feedback from businesses about difficulties encountered when using the agreement.

Both governments also committed to establishing the agreement's committees and working groups, identifying official contact points and addressing implementation problems as they arise.

Importantly, ministers agreed to continue gathering feedback from businesses, industry associations and export promotion organisations to identify barriers and improve the agreement's operation.

For exporters, these measures could help resolve practical difficulties that prevent businesses from fully benefiting from preferential tariffs, particularly smaller companies navigating rules of origin and customs requirements for the first time.

Wider opportunities for UK businesses

Beyond tariffs, ministers agreed to deepen cooperation in services, innovation, government procurement, science and technology.

The meeting coincided with discussions involving the India–UK Science and Innovation Council and an Innovation Roundtable, bringing together businesses, investors and researchers to support the commercial development of new technologies.

Both governments also highlighted the importance of sector-specific discussions, business partnerships and regional engagement in identifying new opportunities.

For UK companies, this reinforces the potential for the trade relationship to support not only goods exports but also partnerships involving advanced manufacturing, technology, research, professional services and industrial innovation.

The JETCO meeting also coincided with the Great North Trade Mission to India, which is taking place from 12–16 October and brings together seven mayors, a combined authority leader and almost 200 representatives from across Northern England to strengthen trade, investment and innovation links. The mission was also recognised in the official JETCO joint statement, which welcomed the delegation's visit and acknowledged the importance of regional partnerships in strengthening commercial ties between the two countries.

We are represented on the mission by Chief Executive James Mason, is participating in the programme alongside other business and civic leaders. The ongoing visit highlights role of regional partnerships in helping UK businesses explore opportunities arising from the trade agreement.

The 17th JETCO meeting will take place in the UK in 2027, although a date has not yet been announced.

UK–India trade opportunities

With bilateral trade worth approximately £48 billion in 2025, India represents a significant and growing market for UK businesses. The agreement is forecast to increase trade between the two countries by £25.5 billion annually in the long run.

Under CETA, India has agreed to reduce or remove tariffs on 90% of tariff lines, covering approximately 92% of existing UK goods exports to India. Around 64% of tariff lines became eligible for duty-free access when the agreement entered into force, with further reductions being introduced over the following decade.

The agreement offers particular opportunities across several UK export sectors, as outlined in the UK Government's trade agreement summary:

  • Advanced manufacturing and engineering: Immediate tariff elimination for products including aircraft parts and most scientific and technical measuring instruments, with further reductions for machinery, tools and automotive components

  • Food and drink: Tariff-free access for products including salmon, cod and lamb, alongside phased reductions for chocolate, biscuits and soft drinks

  • Whisky and gin: Indian tariffs reduced from 150% to 75% when the agreement entered into force, with further reductions to 40% over ten years

  • Automotive: Preferential access under a quota system, reducing tariffs from as much as 110% to 10% for qualifying vehicles

  • Cosmetics and toiletries: Tariffs removed immediately or phased out for selected products, with reductions also applying to perfumes

  • Medical technology: Improved access for equipment including surgical, dental and veterinary instruments

Beyond goods, the agreement opens opportunities in services and Indian government procurement. UK suppliers can potentially compete for an estimated 40,000 covered central government tenders annually, representing more than £38 billion in contracts.

To benefit from preferential tariffs, businesses must meet the relevant requirements, including correct commodity classification, rules of origin, supporting documentation and customs procedures. The Government provides further information in its guidance on tariffs and customs for trade with India.

For companies already exporting to India, the agreement provides an opportunity to review landed costs, pricing and competitiveness. For those considering entering the market, the combination of tariff reductions and wider market access could strengthen the commercial case for expansion.

Explore opportunities in the Indian market

UK–India FTA: What Businesses Need to Know – 2 December 2026

Understand the practical implications of the agreement, including preferential tariffs, rules of origin and customs requirements, at our upcoming online workshop.

Find out more and book your place.

UK–India Trade Mission 2027

West & North Yorkshire Chamber of Commerce and Chamber International are also organising their own trade mission to India in 2027, offering UK businesses opportunities to explore the market and build valuable commercial connections.

To express your interest, contact Nikki Clow, Head of International Trade at Chamber International.

 

By Carla Assunção, Chamber International

 

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