UK-India Free Trade Agreement Takes Effect: A New Era of Trade Relations

The total trade between the UK and India, projected to reach £48 billion by 2025, is on the verge of significant enhancement, allowing consumers in both nations to enjoy more affordable, faster, and simpler access to a wide array of British and Indian products and services.

Celebrating the Trade Milestone

In a notable celebration of this momentous occasion, a special consignment of select British goods arrived at the British Deputy High Commission in Mumbai on the morning of 15 July, courtesy of a British Airways flight. The unveiling of this package was conducted by Harjinder Kang, His Majesty’s Trade Commissioner for South Asia, alongside David Wright, British Airways’ General Manager in India, marking the dawn of new opportunities presented by the trade agreement between the two countries.

The shipment included a variety of UK goods that have benefited from reduced tariffs, encompassing cosmetics, food items, and alcoholic beverages. Harjinder Kang remarked on the significance of this event, stating, “This is a watershed moment for the UK-India partnership. As the landmark trade deal comes into force, what better way to commemorate this than by having select British products arrive on one of the very first UK flights into India this morning, with support from British Airways. Our landmark trade deal is crafted to benefit businesses and consumers from day one with cheaper, quicker, and easier trade. We are all eager to fully leverage the opportunities it presents.”

Strengthening Connections Through Aviation

David Wright echoed this sentiment, emphasising the importance of India as a key market for British Airways. “We have a long history of connecting people, businesses, and cultures across the UK and India. With 63 flights each week, increasing to 70 by the end of summer, we play a crucial role in reinforcing economic and cultural ties between our two nations,” he stated.

The UK-India Free Trade Agreement represents a significant milestone in the bilateral relationship and underscores the long-term potential of one of the world’s most vibrant international corridors. Wright added, “As the UK’s flag carrier, we look forward to strengthening our links with India and connecting customers and communities across our global network for years to come.”

Immediate Benefits of the Trade Agreement

From 15 July onwards, 99% of Indian goods entering the UK and 90% of UK goods entering India will either be duty-free or subject to reduced tariffs. This will provide advantages to a broad spectrum of sectors on both sides, including automotive, manufacturing, consumer goods, creative industries, and medical technology, marking a pivotal advancement in the bilateral economic partnership.

To commemorate this significant development, various celebratory events and activities are set to take place, organised by the UK Government across India and the UK. These will include business receptions in New Delhi, Mumbai, Bengaluru, and at Lancaster House in London.

Long-Term Economic Impact

In the long term, the trade agreement is anticipated to enhance bilateral trade by £25.5 billion annually, contributing £5.1 billion to India’s GDP and £4.8 billion to the UK’s GDP. This projection highlights the potential of the agreement to foster economic growth and prosperity for both nations.

Additional Information and Media Contacts

For those interested in further details, high-resolution photos from the launch event will be accessible on Flickr. The crate of products featured is generously sponsored by several UK companies, including Diageo, Lush, Bodyshop, Denman, Dr. PawPaw, The Somerset Toiletry, Rodial, Collection Cosmetics, Make up Revolution, Truefitt & Hill, BRITPRO LONDON, SAICHO, Mr FILBERTS, The Fine Cheese Co, Maldon Salt, Premier Foods, ReWater, Cornish Sea Salt, and Blue Dragon.

The UK-India trade deal, formally known as the Comprehensive Economic and Trade Agreement (CETA), was signed on 24 July 2025. The rollout of this trade deal was announced last month by Prime Ministers Narendra Modi and Keir Starmer during the G7 summit in France. For more information, please visit the dedicated website.

For media inquiries, please contact Shaun Gibbs, Communications Counsellor and Spokesperson at the British High Commission in Chanakyapuri, New Delhi, at Tel: 24192100 or via email at BHCMediaDelhi@fco.gov.uk. Follow us on social media platforms to stay updated.