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More than three years after the launch of negotiations (see CTPA news item), the UK and India signed a Free Trade Agreement (FTA) on 6 May 2025. The FTA represents a huge economic win for the UK, cutting Indian tariffs on key products (including cosmetics), locking in reductions on 90% of tariff lines for UK exports to unleash opportunities for businesses accross regions and nations of UK.
The deal is expected to increase bilateral trade by £25.5 billion, UK GDP by £4.8 billion and wages by £2.2 billion each year in the long run. In also means barriers to trade will be dropped, with India agreeing to reduce tariffs on a whole host of products, making UK exports more competitive. Exporting to this market will be easier than ever before thanks to India agreeing to release goods as quickly as possible after arrival at customs, work with the UK on one streamlined portal for trade and publish customs procedures and laws online in English. In addition, new digital commitments will support electronic contracts and transactions. These changes could particularly support small and medium-sized businesses, making it easier for them to enter the Indian market. More information can be found on the UK Government website.
Both the UK and India will now need to complete their respective domestic procedures for the FTA to come into effect before businesses will be able to trade under its terms. CTPA will keep members updated when further information is available.
