Key View
- The UK-India Free Trade Agreement, signed on July 24 2025, will eliminate tariffs on 90% of current UK exports to India. Of these, 85% will become tariff-free over the next decade. We forecast bilateral trade will grow to USD120bn by 2030.
- Key benefits for Indian consumers include reduced tariffs on UK whisky (from 150% to 40% over 10 years), automobiles (from 110% to 10%) and the elimination of duties on personal care products and confectionery, making these products more accessible to India’s growing middle class.
- For UK consumers, the FTA will make nearly 99% of Indian exports duty-free, particularly benefiting sectors such as clothing and footwear, jewellery (currently 14.4% of UK jewellery imports) and frozen shrimp (23% of UK imports), providing more affordable options and greater consumer choice.
UK-India Free Trade Agreement: Easing Trade Restrictions on Key Consumer Categories
The UK-India Free Trade Agreement (FTA) marks a new era of economic collaboration, aiming to reduce barriers and enhance trade across critical sectors. This landmark agreement seeks to bolster bilateral trade by cutting tariffs on a range of key consumer goods, ultimately benefiting businesses and consumers in both countries.
One of the primary focuses of the FTA is the reduction of tariffs on textiles and apparel. India, as one of the world’s leading textile producers, stands to gain substantially, allowing its vibrant fashion and textile sector easier access to the UK market. Simultaneously, UK consumers can enjoy a broader array of high-quality products at competitive prices, fostering a mutually beneficial trading environment.
Additionally, automotive exports will see eased restrictions, opening up opportunities for increased collaboration and innovation. The FTA supports the exchange of sustainable technologies, enhancing the growth of eco-friendly automotive solutions. Overall, this agreement is poised to strengthen economic ties, drive growth, and embrace a shared commitment to sustainable development.
