The India-UK trade deal is now operational, but what changed, which industries stand to benefit and what must British companies do to use it? It has already been billed by many as a significant moment in the economic relationship of both nations.
“The cultural, political and social ties between both nations run deep, but this agreement solidifies a long-term, practical economic foundation.” Indian entrepreneur Rupin Banker.
When did the trade deal commence?
The UK and India concluded negotiations on 6 May 2025 and signed the agreement on 24 July 2025. It entered into force on 15 July 2026, following ratification and the preparation of the required customs systems.
This final date is the important one for businesses. From 15 July, qualifying goods could be traded using the agreement’s preferential tariff rates and companies could begin using its provisions on services, digital trade and government procurement.
What does the agreement change?
India will remove or reduce tariffs on 90% of tariff lines, covering 92% of existing UK goods exports. Sixty-four per cent of tariff lines became eligible for tariff-free entry when the agreement commenced, with further reductions phased in over ten years.
The agreement also introduces clearer customs procedures, supports electronic transactions and provides improved access to parts of India’s services and public procurement markets.
Which British industries benefit?
The tariff reductions affect sectors including advanced manufacturing, food and drink, cosmetics, medical technology, electrical machinery and aerospace.
Indian tariffs on UK whisky and gin fell from 150% to 75% when the agreement commenced and will decline to 40% over ten years. Automotive tariffs can fall from more than 100% to 10% within an agreed quota. Tariffs on products including lamb, salmon and some aerospace components were removed immediately, while other reductions follow individual timetables.
Professional services, financial services, engineering, education and technology businesses may also benefit from more predictable market-access rules, digital trade provisions and clearer arrangements for temporary business travel.
Rupin Banker (more here), who has worked extensively across India and the UK, has written that the deal should be viewed as a platform for two-way investment as well as exports. That distinction matters because British expertise and capital may support Indian growth, while Indian companies can use the UK for finance, research and international expansion.
Will exporters receive the lower tariff automatically?
No. A product must satisfy the agreement’s rules of origin. UK exporters must identify the correct commodity code, check the relevant product-specific rule and retain evidence showing that the product qualifies.
The exporter or producer must register with HMRC before completing an origin declaration. The declaration is then sent to the Indian importer and Indian customs using the prescribed authentication process. Without the required documentation, the importer may be unable to claim the preferential rate.
What should businesses do now?
Companies should check the tariff applying to their product, examine the origin rules and confirm whether Indian licences, standards or labelling requirements still apply. The agreement improves market access, but it does not remove normal regulatory obligations.
Businesses should also review their distribution, payment and logistics arrangements. The commercial benefit will depend not only on a lower tariff, but on whether a company can enter the market on competitive and sustainable terms.
