The UK–India Free Trade Agreement (FTA), officially known as the Comprehensive Economic and Trade Agreement (CETA), entered into force on 15 July 2026, creating new opportunities for businesses trading between the UK and one of the world’s fastest-growing major economies.
With total UK–India trade reaching £48 billion in 2025, the agreement is expected to make importing and exporting simpler by reducing or eliminating tariffs on qualifying goods, improving market access and strengthening customs cooperation between the two countries.
In the long term, the UK Government estimates the agreement could increase bilateral trade by £25.5 billion every year, while contributing an estimated £4.8 billion to UK GDP annually.
To mark the agreement entering into force, a shipment of British products benefiting from reduced tariffs—including cosmetics, food products and beverages—arrived in Mumbai aboard a British Airways flight. The launch symbolised the start of a new chapter in UK–India trade and highlighted the opportunities now available to businesses on both sides.
The Agreement Is Now in Force
Following years of negotiations, businesses can now begin taking advantage of the preferential trading arrangements introduced under the agreement.
From 15 July 2026:
- 99% of Indian goods entering the UK are now either duty-free or benefit from reduced tariffs.
- 90% of UK goods exported to India are now either duty-free or benefit from reduced tariff rates.
The agreement is expected to benefit businesses across a wide range of sectors, including:
- Automotive
- Manufacturing
- Consumer goods
- Food and drink
- Medical technology
- Cosmetics
- Engineering
- Creative industries
- Pharmaceuticals
For many businesses, this could mean reduced import duties on qualifying goods, improved export competitiveness and greater opportunities to expand into the Indian market.
Businesses Need to Take Action
Although the agreement is now live, preferential tariff rates are not applied automatically.
Businesses wishing to benefit from the agreement should ensure they:
- Meet the agreement’s Rules of Origin requirements.
- Hold the correct supporting documentation.
- Complete origin declarations where required.
- Register with HMRC if they are issuing origin declarations for qualifying exports.
Without meeting these requirements, importers may not be able to claim the preferential tariff rates available under the agreement.
What Does This Mean for Importers and Exporters?
Now that the agreement has entered into force, businesses trading with India should review their supply chains to ensure they are making the most of the opportunities available.
Potential benefits include:
- Reduced customs duties on qualifying goods.
- Potentially lower landed costs on qualifying imports.
- Improved access to one of the world’s fastest-growing economies.
- Greater confidence when planning long-term sourcing and exporting.
- Improved customs cooperation and simplified trade procedures under the agreement.
The exact benefits available will depend on the products being traded, the applicable tariff schedule and whether the goods satisfy the agreement’s Rules of Origin requirements.
How Beckchoice Can Help
The introduction of the UK–India Free Trade Agreement creates significant opportunities for businesses, but understanding the customs requirements is just as important as understanding the commercial benefits.
Whether you’re importing from India, exporting to Indian customers or exploring the market for the first time, Beckchoice can support you with:
- Sea freight
- Air freight
- Road freight
- Customs clearance
- Import and export documentation
- Supply chain management
Our experienced team can help you navigate the new trading requirements, minimise delays and ensure your shipments remain compliant while taking advantage of the opportunities created by the agreement.
Ready to Make the Most of the UK–India Trade Deal?
The agreement is no longer something businesses need to prepare for—it’s now in force.
If you’re importing from or exporting to India, now is the ideal time to review your supply chain and ensure you’re taking advantage of the preferential trading arrangements available under the agreement.
If you’d like to discuss how the UK–India Free Trade Agreement could benefit your business, contact Beckchoice today. Our team is here to help you trade with confidence.