India UK free trade agreement- A Strategic Leap Forward

INDIA UK FREE TRADE AGREEMENT - A Strategic Leap Forward

Great news for UK-based companies!

India and the UK have signed a landmark Free Trade Agreement (FTA), ushering in a new era of bilateral economic cooperation, reduced tariffs, and expanded access to each other’s markets. This agreement aims to boost trade volume to over $100 billion by 2040.

Key Highlights of the India-UK FTA

Benefits for UK Entrepreneurs looking to expand to India.

1. Tariff Elimination & Trade Access

India will eliminate tariffs on 99% of UK goods covering nearly 100% of trade value. This paves the way for Indian exports in sectors such as:

Textiles & Apparel
Leather & Footwear
Marine Products
Gems & Jewellery
Engineering Goods & Auto parts
Toy & Sports Goods
Organic Chemicals

2. Growing Trade Ties

India ranked as the UK’s 11th largest trading partner in the four quarters of 2024, contributing 2.4% to the UK’s total trade. Top imports to the UK from India included:

Refined Oil
Clothing
Telecom & Audio Equipment
Medicinal & Pharmaceutical Products
Iron & Steel

As bilateral trade grows, these sectors are expected to thrive, especially for small and mid-sized enterprises.

Opportunities for UK Businesses

Access to India’s Growing Services Market

UK service sectors—including professional, and business services—will benefit from market access and regulatory clarity. Reforms in India’s insurance sector will ensure UK companies are treated at par with domestic firms.

Entry into India’s Government Procurement Market

UK businesses now have access to India’s public procurement market—valued at £38 billion per year—in sectors like:

Clean Energy
Transport
Healthcare
Life Sciences

Companies with at least 20% UK-origin products or services will qualify for preferential treatment under “Make in India”.

Efficient Customs Procedures: Goods are to be cleared within 48 hours of arrival at Indian ports, provided all documentation is in order and no physical checks are required.

Sectoral Specific Tariff Reductions

UK Exports to India
Spirits (Whishky / Gin)	150%	75% now, 40% in 10 yrs
Automobiles	100% or more	10% (under quota)
Cosmetics (general)	10-20%	Removed / Phased out
Perfumes	20%	10% (staging period)
Aircraft parts	10-15%	0% immediately
Medical Devices	10%	0-5% phased

Broader Economic Implications

For business entering India:

Boost to Manufacturing: The FTA positions India as a cost-effective base for UK companies targeting regional and global markets.

Professional Mobility: The FTA streamlines visa processes, allowing professionals in engineering, architecture, accountancy, and consultancy to attend conferences, transfer within organizations, and deliver contracted services with greater ease.

Digital trade: The FTA includes provisions to reduce barriers to digital trade promote electronic contacts and support cross border data flows. This will drive innovation and enable UK and Indian firms to collaborate more effectively in emerging tech sectors.

How JurisHub Can Support You

JurisHub provides end-to-end support for businesses expanding into India, including:

Advisory Services: Entity structuring aligned with your objectives.
Company Incorporation: Registration with the Registrar of Companies (ROC).
Ongoing Compliance: Administration, accounting, payroll, company secretarial, tax, and regulatory compliance.
Staffing Solutions: Recruitment and HR support for skilled professionals.

Ready to Explore the Indian Market? Let JurisHub Be Your Strategic Partner.

SOURCES

INDIA UK FREE TRADE AGREEMENT – A Strategic Leap Forward