UK-India Free Trade Deal: A Deal For Growth
Source: gov.uk (2025-05-06)

The UK has secured the best deal India has ever agreed, providing businesses with security and confidence to trade with the fastest-growing economy in the G20.

Delivering Economic Growth

The core mission of this Government is to deliver economic growth that raises living standards and puts money in people’s pockets, and that is exactly what this deal will do. We estimate that it will increase bilateral trade by £25.5 billion, add £4.8billion a year to our economy and boost wages by £2.2 billion every year in the long run. footnote 1 (#footnote-1) This is the best deal India has ever agreed to. It delivers on our manifesto commitment to create trade relationships that unlock new opportunities for businesses across all our nations and regions.

Case study - Standard Chartered

Standard Chartered is a leading UK-based international banking group with a presence in 53 of the world’s most dynamic markets. It is the largest and oldest foreign bank in India, acting as a ‘super connector’ of cross-border trade and investment by driving commerce and prosperity through its unique diversity for more than 165 years.

Saif Malik, CEO, UK and Head of Coverage, UK, Standard Chartered, said:

The UK-India Free Trade Agreement is a significant achievement. It will create new opportunities for UK and Indian businesses, enable greater access to one of the world’s largest and most dynamic markets, and drive growth and innovation across the UK-India corridor.

We welcome this strong commitment to partnership and prosperity.

Case study - UPS

UPS is one of the world’s largest companies, with 2024 revenue of $91.1 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories, including connecting the United Kingdom and India.

Markus Kessler, Managing Director, UPS UK, Ireland and Nordics, said:

We welcome the announcement of this important agreement between two countries that are both vital markets in our global network.

We look forward to continuing to help businesses of all sizes across the UK reach new customers in one of the world’s most populous and dynamic countries.

Future-Proofing Our Economy

This deal gives UK businesses first-mover advantage with a new economic superpower. Currently the biggest country in the world by population, India is projected to move from its fifth-largest global economy to third in the next three years, thanks to the highest growth rate in the G20. footnote 2 (#footnote-2) By the end of the decade, it will be home to an estimated 60 million middle-class consumers, whose numbers are projected to grow to a quarter of a billion by 2050. footnote 3 (#footnote-3) And by 2035, their demand for imports is on course to top £1.4 trillion. footnote 4 (#footnote-4) The enormous scope of this market, where British goods and services are already sought after, represents an equally huge opportunity for UK businesses in the decades to come.

Case study - John Smedley Ltd

Established in 1784 in Lea Mills, Derbyshire, John Smedley Ltd is a UK-based manufacturer and retailer of luxury knitwear.

Bill Leach, Global Sales Director, John Smedley Ltd, said:

India is one of the fastest growing luxury markets in the world, and we are very excited about the UK- India Free Trade Agreement coming to fruition.

John Smedley knitwear is already sold in over 50 countries around the world, and now that the FTA has been finalised, we shall very much look forward to ensuring that an ever-increasing number of discerning luxury consumers in India will enjoy greater access to The World’s Finest Knitwear.

We are thankful to DBT for their significant efforts in bringing this FTA to successful conclusion.

Cutting costs for UK-India trade

From day one, this deal will support businesses across the United Kingdom by making it cheaper, easier, and quicker to trade with India. The deal will slash costs on UK exports, including whiskies and gin, cosmetics, medical devices, advanced machinery and lamb. Based on current trade alone, India’s tariff cuts amount to £400m in the first year, going up around £900m after 10 years. footnote 5 (#footnote-5) And that’s before factoring in the savings from speedier and easier trade from improved customs and digital commitments. This immediate relief represents a major advantage our businesses will enjoy over their international competitors, helping them to invest, expand, and support more high-quality jobs.

Case study - Smith+Nephew

Smith+Nephew designs and manufactures technology that takes the limits off living. Smith+Nephew’s products include: Advanced Wound Management; orthopaedics and a robot assisted surgery system; and joint preservation and soft tissue orthopaedics.

Deepak Nath, Chief Executive Officer, Smith+Nephew, said:

Given the size of the Indian economy and its healthcare system, India is an important location for Smith+Nephew. The Free Trade Agreement offers the potential to build trading links in the healthcare sector.

We hope that the Free Trade Agreement will enable Smith+Nephew’s innovative medical technologies to support more healthcare professionals to return their patients to health and mobility.

Delivering opportunities for High-Growth Sectors

This deal supports the UK’s world-leading high-growth sectors identified in the Industrial Strategy, including:

Slashing tariffs for UK’s large and varied advanced manufacturing sectors, including for automotives, electrical machinery and high-end optical products.

Giving the clean energy industry brand new and unprecedented access to India’s vast procurement market, as India makes the switch to renewable energy, alongside their growing energy demand.

Unlocking new opportunities for medical devices firms within the life sciences sector, with reduced tariffs and rules of origin that factor in the UK’s complex supply chains and ensure that businesses can reap the benefits.

Enshrining copyright protections for the creative sector, enabling our exporters to feel confident exporting to India with a commitment that works will continue to be protected for at least 60 years. India will also commit to engaging on aspects of Copyright and Related Rights. This deal addresses the interests of UK creators, rights holders, and consumers, including around Public Performance Rights and Artist Resale Rights, which acknowledge the importance of payment rights. India will also conduct an internal review of their copyright protection terms.

Guaranteeing access for the UK’s world-class financial and professional business services sectors to India’s growing market. This is on top of securing India’s foreign investment cap for the insurance sector, ensuring UK financial services companies are treated equally to domestic suppliers, and encouraging the recognition of professional qualifications.

Securing India’s best ever commitments on digital trade for our Digital and technology sectors, such as promoting digital systems and paperless trade, helping UK businesses of all sizes take the opportunities on offer in this huge and rapidly expanding market.

Case study - Premier League

The Premier League is the world’s most-watched football competition, reaching 1.6 billion viewers in 189 countries around the world. The global success of the Premier League makes it one of the UK’s most significant soft power assets, amplifying British cultural values and generating economic growth and inward investment.

Premier League Chief Executive Richard Masters said:

India continues to be incredibly important to the Premier League and its clubs. It is a vibrant country that presents exciting opportunities and significant potential. The Premier League’s recent announcement of an office opening in Mumbai demonstrates our commitment to build on longstanding work to engage local fans, develop grassroots and elite football and further promote the game in India.

The continued growth of the Premier League and UK businesses in India will have a positive impact on our domestic economy and we welcome the news of this new trade deal secured by Government, which will support UK businesses operating in India.

Case study - EY

EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fuelled by sector insights, a globally connected, multidisciplinary network and a diverse ecosystem of partners, EY teams provide services in more than 150 countries and territories.

Rohan Malik, EMEIA and UKI Government & Public Sector Managing Partner, EY, said:

This agreement is poised to accelerate an economic partnership that is already thriving, with the value of total trade between the UK and India having more than doubled from £16.6bn to £40bn over the last decade.

British businesses stand to benefit substantially from enhanced access to one of the world’s largest export markets and a skills pool that can fuel strategically important UK sectors, including professional services and emerging industries based around data and AI.

Case study - Concrete Canvas Ltd

Concrete Canvas Ltd is a Wales-based low-carbon concrete manufacturer.

William Crawford, Director of Concrete Canvas Ltd, said:

India is a dynamic and vibrant economy and an increasingly important market for Concrete Canvas products. A UK-India FTA will help to accelerate our plans for growth by reducing trade barriers and making us more competitive.

This is welcome news for both UK and Indian businesses!

Case study - Biopanda

Biopanda is a Belfast-based medtech manufacturer which exports in vitro test kits for clinical laboratories, veterinary practice, and food safety laboratories.

Philip McKee, Sales Manager at Biopanda, said:

Biopanda have been supplying a range of diagnostic products to the Indian market throughout the past ten years.

We value the business we have done already throughout India and with the introduction of the UK-India FTA this should benefit in increased trade with the removal of export barriers.

This will hopefully increase the market access, allowing our distributors throughout India to provide a larger range of our highly accurate clinical diagnostic products at a lower price to the consumer.

Unlocking Opportunities Nationwide

Through our Plan for Change, this government will raise living standards in every part of the United Kingdom. This deal supports that goal, unlocking new opportunities in every region and nation.

This deal also opens a huge new market for iconic UK brands, securing India’s best ever tariff offer and providing access to India’s growing middle-class consumer base, which will give iconic UK brands the opportunity to expand their reach and influence. This access includes cutting tariffs on whiskies from 150% to 75% at entry into force, following to 40% after 10 years, as well as on other agri-food products such as soft drinks dropping from 33% to 0% after seven years, and lamb dropping from 33% to 0% at entry into force. Separately high-end cars will benefit from a drop from over 100% to 10% under a quota. We have also secured India’s best ever agreement on Rules of Origin, which enables UK businesses to take advantage of these new lower tariffs.

This deal will also support consumers as they benefit from the best of India and greater variety as our trading relationship grows, including clothing, footwear, and iconic food and drink. New commitments will also help protect consumers from spam texts from India, which could include requiring opt-out or prior consent.

Case study - Chivas Brothers Ltd

Chivas Brothers Ltd is part of the Pernod Ricard group of companies and exports over £2bn of Scotch whisky and gin every year, including brands like Chivas Regal, Ballantine’s, The Glenlivet and Beefeater. India is amongst Chivas Brothers’ largest export markets and the biggest consumer of whisky worldwide by volume. The UK-India trade agreement will help solidify and potentially expand on Pernod Ricard’s existing investments, which includes a €200m distillery construction in the Indian state of Maharashtra and £100m in bottling facilities in Dumbarton, Scotland.

Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said:

The announcement of a free trade agreement in principle between the UK and India is a welcome boost for Chivas Brothers during an uncertain global economic environment.

India is the world’s biggest whisky market by volume and greater access will be a game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s. The deal will support long term investment and jobs in our distilleries and bottling plants in Scotland, as well as help deliver growth in both Scotland and India over the next decade. Slàinte to the UK Ministers and officials who steered the deal though long negotiations.

Case study - Diageo

Diageo is a global leader in beverage alcohol with a collection of brands across spirits and beer categories sold in more than 180 countries around the world. These brands include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoﬀ, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Diageo is a leading player in India’s beverage alcohol sector and is among the top 10 fast-moving consumer goods companies in India by market capitalisation. Diageo has 50 manufacturing facilities across India, employs over 3,300 people directly in market with a further 100,000 jobs supported throughout its value chain. India is one of Diageo’s largest markets globally and accounts for almost half of its total global spirits volume.

Diageo Chief Executive Debra Crew said:

The UK-India Free Trade Agreement is a huge achievement by Prime Ministers Modi and Starmer and Ministers Goyal and Reynolds, and all of us at Diageo toast their success. It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK.

The deal will also increase quality and choice for discerning consumers across India, the world’s largest and most exciting whisky market.

Enhancing Security through our partnership

The UK and India already enjoy a deep and broad partnership built on our shared principles as two democracies, our commitment to the rules-based international order, strong ties in areas including culture, education, food, and sport, and of course through our living bridge – with some 1.9 million people with Indian heritage calling the UK their home. footnote 6 (#footnote-6)

This agreement encourages collaboration between our two complementary economies. It creates a framework to promote closer ties on innovation – including on new technologies in areas like agriculture, health, advanced manufacturing, and clean energy. And our agreement on business mobility will help experts on both sides deliver their services, enabling us to capitalise on the economic transformation that technology will bring over the course of this century.

Through this deal, we are showing the world that we stand for free, fair, and open trade. In an increasingly unstable and volatile world, this provides businesses with the confidence that they need to grow and expand. And as India’s approach to global trade changes, so can this deal. We have agreed in numerous areas that, if India offer a better deal to a different country, we can come back to the table to renegotiate for the UK.

Case study - Coltraco Ultrasonics

Coltraco Ultrasonics are high-exporting advanced manufacturers of ultrasonic instrumentation and systems, exporting 90% manufactured output to 120 countries. Coltraco have twice won the Queen’s Award for Enterprise in International Trade and have exported to India for 30 years. Since 2019, Coltraco have won the contract for nearly 200 ships of the Indian Navy and Coast Guard and support in-service use and maintenance of their ultrasonic watertight integrity instrumentation on board.

Professor Carl Stephen Patrick Hunter OBE, Chairman Coltraco Ultrasonics Limited & Director-General The Durham Institute of Research, Development & Invention, said:

Coltraco Ultrasonics is strongly supportive of the India FTA Trade Agreement and proud to have modestly contributed to and advising the British negotiating team on various chapters.

The UK private sector can now, because of the India FTA, the Windsor Framework CPTPP, and a variety of other UK FTAs, look out to the world, balancing our exporting and investment opportunities between the USA, the EU and Asia Pacific.

It is a tremendous success and we thank British and Indian Civil Servants for their public service in the UK-India FTA.

Unlocking Access to India’s Untapped Procurement Market

For the first time, UK businesses will have guaranteed and unprecedented access to India’s vast procurement market, covering goods, services and construction. UK businesses will be granted brand new access to approximately 40,000 tenders with a value of at least £38 billion a year. footnote 8 (#footnote-8) This will unlock significant opportunities spanning a range of sectors, including transport, healthcare and life sciences and green energy. Alongside this UK firms will, for the first time, have access to India’s procurement portal, connecting them to the information they need to make the best out of these opportunities – which will grow as India builds the infrastructure necessary for an economic superpower with the world’s largest population.

UK companies will also get exclusive treatment under the ‘Make in India’ policy, which currently provides preferential treatment for federal government procurement to businesses who manufacture or produce in India. However, this unprecedented treatment will mean that if at least 20% of a company’s product or service is from the UK, they will be treated as a ‘Class Two local supplier’– granting them the same status that is currently only ever given to Indian businesses.

Case study - Arup

Arup is an employee-owned business that provides engineering and technical and advisory services dedicated to sustainable development. It is headquartered in the UK and operates globally with around 18,000 members. It is a trusted partner of the government in India and has delivered a wide range of projects including the Bangalore international airport, the iconic Statue of Unity, and the Indian Railways Station Redevelopment programme.

Paula Walsh, Managing Director, UK, India, Middle East and Africa, said:

Arup supports the UK–India Free Trade Agreement and the powerful role this will play in boosting investment, jobs and growth. It is an important opportunity to deepen our collaboration with partners in India, sharing UK skills and technical expertise to deliver resilient and future-focused solutions across transport, energy, and the built environment.

We are proud to have been part of a recent delegation to India, sharing renewable energy expertise with government representatives and look forward to continuing this critical partnership.

Protecting Our Values

Throughout the negotiations, we have championed our values – securing India’s first ever chapters on anti-corruption, consumer protections, labour rights, the environment, gender equality, and development. We have protected the NHS, defended the UK’s interests, ensured the points-based immigration system is not affected, upheld our high food standards, and maintained our animal welfare commitments throughout. This deal demonstrates our commitment to both workers and businesses, staying true to our values while driving economic growth.

1. DBT CGE modelling. See Technical Annex (https://www.gov.uk/government/publications/uk-india-free-trade-agreement-technical-note)

2. World Economic Outlook Database, October 2024 (https://www.imf.org/en/Publications/WEO/weo-database/2024/October)

3. Projections are calculated using the methodology described in DBT’s Global Trade Outlook, February 2023 (https://assets.publishing.service.gov.uk/media/63fcd76de90e0740df9e0315/global-trade-outlook-february-2023.pdf)

4. Ibid.

5. The methodology for estimating the value of duties can be found in Annex 5 of the technical annexes accompanying the UK-India FTA Scoping assessment (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1046159/technical-annexes-accompanying-the-scoping-assessment-of-a-free-trade-agreement-fta-between-the-united-kingdom-of-great-britain-and-northern-ireland-and-india.pdf)

6. 2021 England and Wales Census (https://www.ethnicity-facts-figures.service.gov.uk/uk-population-by-ethnicity/national-and-regional-populations/population-of-england-and-wales/latest/); 2021 NI Census (https://www.nisra.gov.uk/system/files/statistics/census-2021-ms-b02.xlsx); 2011 Scottish Census (https://www.scotlandscensus.gov.uk/census-results/at-a-glance/ethnicity/)

7. DBT inward investment results 2023 to 2024 (HTML version) - GOV.UK; (https://www.gov.uk/government/statistics/dbt-inward-investment-results-2023-to-2024/dbt-inward-investment-results-2023-to-2024-html-version) ; Grant Thornton, Britain meets India 2024 (https://www.grantthornton.in/en/insights/international-business/britain-meets-india-2024/#form); Grant Thornton, India meets Britain tracker: 2023. (https://www.grantthornton.co.uk/insights/india-meets-britain-tracker/)

8. This analysis utilises Top 200 Entity data from India’s e-procurement dashboard (https://eprocure.gov.in/eprocdashboard/), for the financial years 2020-21, 2021-22 and 2022-23, which is not exhaustively used by all federal government agencies for all procurements. Therefore, several entities included within India’s market access schedule cannot be included within the analysis. This analysis does not take into account restrictions on access as a result of Make in India, the chapter thresholds and tenders for goods or services not covered by the government procurement chapter.