by Kamrul Hasan FCILT – Sales manager UK & Ireland
The long-awaited UK-India Free Trade Agreement (FTA) officially came nto force on 15 August 2026, marking a major milestone in the economic partnership between two of the world’s fastest-growing trading nations UK and India.
The agreement is widely regarded as the UK’s most significant trade deal since leaving the European Union and India’s most comprehensive agreement with a European nation. Backed by former UK Prime Minister Sir Keir Starmer and Indian Prime Minister Narendra Modi, the FTA is expected to boost annual bilateral trade by around £25.5 billion while contributing approximately £4.8 billion to the UK economy and £5.1 billion to India’s economy over the long term. Following the completion of ratification procedures in both countries businesses can now begin benefiting from reduced tariffs, improved market access and streamlined trading procedures.
Market Reaction: Strong Confidence from Business
The implementation of the UK-India FTA has been welcomed across both countries by manufacturers, exporters, logistics providers and trade organisations. Businesses see the agreement as a significant step towards reducing the cost of international trade while creating new opportunities for investment and long-term commercial partnerships. Companies in sectors including automotive, engineering, food and beverage, pharmaceuticals, textiles and consumer goods are expected to benefit from improved market access and lower import duties.
The logistics and shipping industry has also reacted positively with expectations of increased container volumes as trade between the UK and India continues to grow. Many exporters are already reviewing their supply chains and sourcing strategies to take advantage of the new preferential tariff arrangements while businesses remain optimistic and many are also focusing on understanding the Rules of Origin requirements and customs procedures to ensure they can fully benefit from the agreement from day one.
We, DKT Allseas Shipping Ltd ready to support the New Trading Landscape are proud to welcome the implementation of this landmark agreement. As the official UK liner agent for The Shipping Corporation of India (SCI) since 2014 we have been supporting UK-India trade for over a decade.
Our reliable weekly liner services connect two major UK ports with all major Indian ports through an extensive network of road, rail and feeder connections, providing dependable and efficient shipping solutions for businesses trading between both countries. As importers and exporters begin taking advantage of the new trading environment, our experienced team is ready to provide container shipping, customs support and end-to-end logistics solutions that help businesses maximise the benefits of the FTA.
Key Benefits of the UK-India FTA
Reduced and Eliminated Tariffs
One of the biggest advantages of the agreement is the reduction or elimination of tariffs across thousands of products, helping businesses lower costs and improve competitiveness.
UK Exports to India
India has reduced or eliminated tariffs on around 90% of UK tariff lines, covering approximately 92% of UK exports by value.
Key highlights include:
- Tariffs on Scotch whisky reduced from 150% to 75%, with a phased reduction to 40% over the next ten years.
- Tariffs on UK-manufactured passenger vehicles, within agreed quotas, reduced from over 100% to 10%.
- Improved access for machinery, advanced manufacturing, chemicals and a wide range of industrial products.
Some sensitive products, including sugar, milled rice, pork, chicken and eggs, remain outside the tariff liberalisation programme.
Indian Exports to the UK
Approximately 99% of Indian goods now receive duty-free access to the UK market.
Major beneficiary sectors include:
- Textiles and apparel
- Leather products
- Jewellery
- Engineering goods
- Processed food products
These changes are expected to improve competitiveness, reduce costs for importers and strengthen supply chains between both countries.
Improved Services and Business Mobility
The agreement goes beyond goods by strengthening cooperation in services and investment.
Key benefits include:
- Easier temporary business travel for professionals working in IT, engineering, architecture and other specialist sectors.
- Enhanced digital trade provisions.
- Stronger intellectual property protections.
- Improved regulatory cooperation.
- Introduction of the Double Contribution Convention (DCC), allowing eligible temporary workers to continue paying into their home country’s social security system for a defined period, helping reduce duplicate contributions for employers and employees.
New Opportunities in Public Procurement
For the first time, UK businesses can bid for a broad range of Indian central government procurement contracts worth an estimated £38 billion annually.
This creates significant opportunities across sectors including:
- Infrastructure
- Transport
- Energy
- Engineering
- Public services
The agreement is designed to improve transparency, encourage fair competition and promote long-term investment between both countries.
What Businesses Need to Do
Although the agreement is now in force, businesses should ensure they understand the requirements needed to qualify for preferential tariff treatment.
Key areas include:
- Meeting Rules of Origin requirements.
- Maintaining the correct supporting documentation.
- Understanding customs declaration procedures.
- Complying with product standards and certification requirements.
- Keeping up to date with guidance issued by UK and Indian customs authorities.
Businesses that prepare early and maintain accurate documentation will be best placed to benefit from reduced duties and smoother customs clearance.
Growing Opportunities Across Multiple Industries
The UK-India FTA creates exciting opportunities across a wide range of industries, including-
- Manufacturing
- Automotive
- Food and beverages
- Pharmaceuticals
- Chemicals
- Consumer goods
- Retail
- Textiles
- Engineering
- Technology
Lower trading costs, simplified customs procedures and stronger regulatory cooperation are expected to encourage greater investment, supply chain diversification and stronger long-term business partnerships.
Looking Ahead
The implementation of the UK-India Free Trade Agreement on 15 August marks the beginning of an exciting new chapter in UK-India trade. As businesses begin to realise the benefits of lower tariffs, improved market access and expanded commercial opportunities, efficient logistics and reliable shipping services will play an increasingly important role in supporting this growth.
At DKT Allseas Shipping Ltd., we are proud to continue supporting UK-India trade through our long-standing partnership with The Shipping Corporation of India (SCI).
Whether you are importing from India, exporting to India or expanding your international supply chain, our experienced team is ready to help you navigate the opportunities created by this historic agreement.
We look forward to supporting businesses as trade between the UK and India enters an exciting new phase.
