News from our global business network
UK-India Trade Deal

The UK has signed a trade deal with India on the 24th July 2025. Negotiations were launched on 13th January 2022.

Prime Minister Sir Keir Starmer and the Prime Minister of India, Narendra Modi, have formally signed a free trade agreement between the two countries which will see communities across every region of the UK benefiting from its £4.8 billion increase to the UK GDP each year.

It will also reduce tariffs on 99% of Indian goods and 90% of UK exports (some phased).

The UK and India are required to complete their respective domestic procedures for the agreement to come into effect, once ratified by both countries businesses will be able to trade under its terms. Ratification is expected to take around a year. 
 

Guidance, explainers and other documents to help you understand the Free Trade Agreement between the UK and India.

The treaty information, correspondence, explainer documents and press releases from Gov.uk can be read here

A report by the Department for Business and Trade, titled Impact Assessment of the Free Trade Agreement Between the United Kingdom of Great Britain and Northern Ireland and India, sets out the Government’s analysis of the economic, social and environmental impacts of the trade deal.

You can read the full report here

The BCC launched a new explainer on the UK-India Trade Deal, which breaks down what the agreement really means for businesses, for workers, and for the future of UK-India relations. View the explainer here 

Reacting to news on the signing of a Free Trade Agreement (FTA) with India, William Bain, Head of Trade Policy at the BCC, said: 

The signing of this agreement is a clear signal of the UK’s continuing commitment to free and fair trade. 

“It will open a new era for our businesses and boost investment between two of the world’s largest economies.  

“Key UK sectors which are expected to benefit include food and drink, industrial goods and automotives. Not only will they see lower tariffs now, but there will be further reductions over the next decade, creating stable conditions to expand UK exports to a fast-growing market. 

“Currently around 16,000 UK companies are trading goods with Indian companies, and there is high interest in our Chamber Network to grow that.  

“A stronger UK-India relationship also creates huge scope to raise our services exports, which already outperform our sales of goods. This deal will create new opportunities in the transport, travel, creative and business support sectors alongside traditional strengths in finance and professional services.” 
 

Richard Heald OBE, Chair of the BCC’s sister Chamber in India, the UK-India Business Council (UKIBC), said:

The UK-India FTA marks a historic milestone in the bilateral relationship. Businesses across both countries have long called for an agreement that reduces barriers, enhances market access, and creates a clear framework for long-term, sustainable growth.

“We congratulate both governments for their commitment and ambition in bringing this complex negotiation to fruition. Success in the FTA will support further economic growth for the world’s 5th and 6th largest economies. It will catalyse collaboration in other areas too. 

“UKIBC, and more broadly British businesses, recognise that a successful FTA is a critical milestone in a longer-term journey and are keen to support India’s ambitions. As a trusted partner to both governments and businesses, UKIBC has actively supported the FTA journey through consultation, policy input, and sector-specific insight.

 

Unlock Business Opportunities with the India–UK Free Trade Agreement

Join experts from the UK India Business Council (UKIBC) for an insightful webinar exploring how the India–UK Free Trade Agreement (FTA) can open new doors for your business.

This session is ideal for anyone already exporting to India who may be unaware of the benefits the FTA will bring to their business. Let our experts guide you through the opportunities available in this burgeoning market.

Exclusive Benefit: Webinar attendees will also have the chance to book a free one-hour consultation with UKIBC experts for tailored business advice.

Date:  Wednesday 15 October   10.00am - 11.00am 
Platform:  Zoom
Cost: FREE for Members - Non-Members £25.00 + VAT

© 2025 Essex Chambers of Commerce & Industry Ltd, All rights reserved.
Registered in England No: 02981688 Registered Office: Launchpad Southend - Office S8, Airport Business Park, Cherry Orchard Way, Rochford, Essex SS4 1YH

Terms and Conditions | Privacy Policy