UK-India Free Trade Agreement Launches, Cuts Tariffs on 99% of Indian Goods

Historic UK-India Free Trade Agreement comes into force

New Delhi, July 15

UK-India total trade, worth £48 billion in 2025, is set for an immediate boost, with consumers now enjoying cheaper, quicker, and easier access to the best of British and Indian products and services across both countries, as per an official release.

To celebrate this historic occasion, a special package of select British goods arrived at the British Deputy High Commission in Mumbai aboard a British Airways flight. The package was unveiled by Harjinder Kang, Trade Commissioner for South Asia, and David Wright, British Airways' General Manager in India, to signal the arrival of new opportunities unlocked under the agreement for both countries.

The package contained goods from the UK benefiting from reduced tariffs, including cosmetics, food products, and alcoholic beverages.

Harjinder Kang, Trade Commissioner for South Asia and British Deputy High Commissioner for Western India, said: "This is a watershed moment for the UK-India partnership. As the landmark trade deal comes into force, what better than having select British products arriving on one of the very first UK flights into India this morning, with thanks to the support of British Airways. Our landmark trade deal is designed to benefit businesses and consumers from day one with cheaper, quicker, and easier trade. We are all excited to take full advantage of it."

David Wright, British Airways' General Manager in India, said: "India is one of British Airways' most important markets, and we have a long history of connecting people, businesses, and cultures across the UK and India. With 63 flights each week, increasing to 70 by the end of summer, we play an important role in strengthening economic and cultural ties between our two countries.

"The UK-India Free Trade Agreement marks a significant milestone in the relationship between the UK and India and reinforces the long-term potential of one of the world's most dynamic international corridors. We are proud to support this landmark agreement and the opportunities it will create for trade, investment, and tourism.

"As the UK's flag carrier, we look forward to deepening our links with India and connecting customers and communities across our global network for years to come."

Starting today, 99 per cent of Indian goods entering the UK and 90 per cent of UK goods entering India will either be duty-free or subject to reduced tariffs, the release stated.

It will benefit a wide range of sectors on both sides, including automotive, manufacturing, consumer goods, creative industries, and medical technology, marking the biggest milestone in the bilateral economic partnership.

To mark this major milestone, many celebratory events and activations will be hosted by the UK Government across India and the UK, including business receptions in New Delhi, Mumbai, Bengaluru, and at Lancaster House in London.

In the long run, the deal is expected to boost bilateral trade by £25.5 billion, Indian GDP by £5.1 billion, and UK GDP by £4.8 billion every year, the release noted.

— ANI