The landmark UK-India Free Trade Agreement (FTA) has officially come into force, marking one of the most significant trade deals in recent history and paving the way for cheaper, faster and easier trade between the two countries.

 

The agreement, which took effect on 15 July, is expected to deliver immediate benefits to businesses and consumers by lowering tariffs, expanding market access and strengthening economic ties across key sectors including automotive, manufacturing, consumer goods, creative industries and medical technology.

 

UK-India trade was worth £48 billion in 2025, with the agreement projected to increase bilateral trade by £25.5 billion annually over the long term. It is also forecast to boost India's GDP by £5.1 billion and the UK's GDP by £4.8 billion every year.

 

To mark the agreement's implementation, a specially curated shipment of British products arrived in Mumbai aboard a British Airways flight on the morning of 15 July. The package, unveiled at the British Deputy High Commission by Harjinder Kang, UK Trade Commissioner for South Asia, and British Airways India General Manager David Wright, showcased products that will now benefit from reduced tariffs, including cosmetics, food products and alcoholic beverages.

 

Harjinder Kang said: "This is a watershed moment for the UK-India partnership. As the landmark trade deal comes into force, what better than having select British products arriving in one of the very first UK flights into India this morning - with thanks to support from British Airways. Our landmark trade deal is designed to benefit businesses and consumers from day one with cheaper, quicker and easier trade. We are all excited to take full advantage of it."

 

British Airways said the agreement reinforces the growing economic relationship between the two countries, with the airline continuing to expand connectivity between the UK and India.

 

David Wright, British Airways' General Manager in India, said: "India is one of British Airways’ most important markets and we have a long history of connecting people, businesses, and cultures across the UK and India. With 63 flights each week going up to 70 by the end of summer, we play an important role in strengthening economic and cultural ties between our two countries.

 

"The UK-India Free Trade Agreement marks a significant milestone in the relationship between the UK and India and reinforces the long-term potential of one of the world’s most dynamic international corridors. We are proud to support this landmark agreement and the opportunities it will create for trade, investment and tourism.

 

"As the UK’s flag carrier, we look forward to deepening our links with India and connecting customers and communities across our global network for years to come."

 

Under the agreement, 99% of Indian exports to the UK and 90% of UK exports to India will either enter duty-free or benefit from reduced tariffs from day one, delivering immediate gains for exporters and importers in both markets.