UK–India Free Trade Agreement (FTA) – Effective from 15 July 2026

The UK–India Free Trade Agreement (FTA), one of the most significant trade agreements between the two countries in recent years, will officially come into force on 15 July 2026.

The agreement is expected to strengthen bilateral trade, improve market access, reduce tariffs, and create new opportunities for businesses trading between the UK and India.

Key Trade Highlights

Significant Tariff Reductions

• India’s average tariff on UK goods will reduce from approximately 15% to 3%.
• The UK will provide duty-free access on 99% of Indian exports by value.
• India has opened 89.5% of its tariff lines, covering around 91% of UK exports, while protecting sensitive domestic sectors.

While Indian exporters will gain immediate access benefits, many of the advantages for UK goods exporters are expected to develop progressively over the coming years, making the agreement a significant long-term strategic opportunity.

Major Benefits Under the Agreement

1. Tariff Reductions on UK Exports

• India will reduce tariffs on around 90% of UK goods.
• UK exporters will gain improved access to one of the world’s fastest-growing major economies.

2. Reduced Duties on Whisky & Gin

India’s import duty on UK whisky and gin will decrease:

• From 150% to 75% immediately
• Further reducing to 40% over the next 10 years

3. Automotive Sector Benefits

• Indian tariffs on UK vehicles will reduce from over 100% to 10%, subject to agreed quota arrangements.

Opportunities for Indian Exporters

Indian businesses are expected to benefit from improved access to the UK market across sectors including:

• Textiles & Apparel
• Footwear
• Gems & Jewellery
• Furniture
• Auto Components
• Chemicals
• Engineering Products
• Marine Products
• Toys & Sports Goods

Growing demand for India to UK courier services is expected as more Indian businesses gain improved access to the UK market.

Opportunities for UK Exporters

The agreement improves market access in India for:

• Scotch Whisky & Gin
• Luxury Vehicles
• Medical Devices
• Cosmetics & Personal Care Products
• Food & Beverage Products
• Aerospace & Advanced Manufacturing

Businesses involved in international trade can benefit from reliable UK to India courier services for commercial and personal shipments.

Services & Professional Mobility

The FTA also strengthens cooperation in services and professional mobility, benefiting:

• IT & Digital Services
• Financial Services
• Professional Services
• Temporary movement of skilled professionals between the UK and India

Social Security Relief

Professionals temporarily working in the other country will benefit from:

• Avoiding double social security contributions in both countries simultaneously
• An extended exemption period, increasing from 3 years to 5 years

Key Sectors Receiving Zero-Duty Access to the UK

Particularly relevant for businesses in fashion, retail, food, and manufacturing sectors:

Textiles & Apparel

• Previous duties of up to 12% removed
• Covers over 1,100 tariff lines
• Improves India’s competitiveness against other major exporting nations

Marine Products

• UK tariffs of 4.2%–8.5% on selected products will be eliminated
• Includes shrimp, tuna, fishmeal and related products

Agri-Food Products

Duty-free opportunities for:

• Grapes
• Processed Foods
• Bakery Products
• Spices
• Tea
• Coffee

Additional Beneficiaries

• Leather Products
• Gems & Jewellery

Action Required Before 15 July 2026

Businesses wishing to benefit from preferential tariff treatment under the UK–India FTA should act now.

To claim reduced or zero-duty rates, businesses must ensure their products meet the relevant Rules of Origin requirements and complete the necessary origin declarations.

Important Steps

1. Register with HMRC to Complete Origin Declarations

www.gov.uk/guidance/register-to-complete-origin-declarations-under-the-uk-india-free-trade-agreement

2. Check Product Eligibility Under Rules of Origin

www.gov.uk/government/publications/uk-india-ceta-chapter-3-rules-of-origin

Businesses are encouraged to use the remaining preparation period to review product eligibility, update documentation processes, and ensure compliance before the agreement comes into effect on 15 July 2026.