Introduction

On 24 July 2025, India and the United Kingdom signed a landmark Free Trade Agreement—what some are calling the most significant trade deal since Brexit. The pact is expected to reshape trade dynamics by drastically cutting tariffs, unlocking new market access, and strengthening economic collaboration


What’s in the Deal—Simplified

Tariff Relief Across the Board

India will slash duties on nearly 90% of UK exports, including whiskies, cosmetics, and medical devices. In many cases, levies drop from 150% to 75%, with plans to reduce to 40% within a decade. 

  • Conversely, 99% of Indian goods—think textiles, gems, machinery, and auto parts—will now enter the UK tariff-free. 





Massive Export Potential

By 2040, bilateral trade is projected to increase by US$34 billion annually, with trade possibly doubling to US$120 billion by 2030. 

Wins for Services & Professionals

Service providers like yoga instructors, chefs, and musicians will enjoy easier visa access. Temporary Indian workers in the UK may be exempt from social security contributions for up to three years. 

Boost for Manufacturing & Government Opportunities

India's MSMEs, especially in textiles and jewelry, are set to benefit. Additionally, UK firms will get access to India's public procurement tenders—worth an estimated £38 billion annually. 

Why It Matters to You as an Exporter

  • Competitive Advantage: With tariffs slashed, your products—be it fabrics, spices, or marine goods—stand out on UK shelves.
  • Strategic Expansion: Early movers can tap into emerging UK demand ahead of market saturation.
  • Operational Ease: Simplified customs, improved visa rules, and social security waivers further ease cross-border planning.

How to Make the Most of It

  • Audit your products for UK readiness—ensure they meet safety, quality, and origin norms.
  • Connect with UK importers and attend industry shows or matchmaking forums to get a head start.
  • Leverage treaty advantages in your marketing: emphasize “duty-free exports to the UK” or “preferential access to a £38 billion procurement market.”