NEW DELHI, July 15: The landmark UK-India Free Trade Agreement (FTA) officially came into force on Tuesday, reducing or eliminating tariffs on the vast majority of goods traded between the two countries and marking one of the most significant milestones in bilateral economic relations.
The agreement is expected to provide an immediate boost to the UK-India trade relationship, which was valued at £48 billion in 2025, by making trade faster, cheaper and easier for businesses and consumers in both countries.
Under the pact, 99% of Indian goods entering the UK and 90% of UK goods entering India will now either be duty-free or subject to reduced tariffs. The agreement is expected to benefit sectors including automotive, manufacturing, consumer goods, creative industries and medical technology.
To mark the agreement’s entry into force, a special consignment of British products arrived aboard a British Airways flight at the British Deputy High Commission in Mumbai on Tuesday morning. The package, containing British cosmetics, food products and alcoholic beverages that will benefit from lower tariffs, was unveiled by His Majesty’s Trade Commissioner for South Asia, Harjinder Kang, and British Airways General Manager for India, David Wright.
Kang described the agreement as a “watershed moment” in UK-India relations, saying it would deliver immediate benefits to businesses and consumers through lower trade barriers and improved market access.
British Airways also welcomed the implementation of the agreement, highlighting India’s growing importance as one of its key international markets. The airline currently operates 63 weekly flights between the two countries and plans to increase that number to 70 flights per week by the end of the summer.
According to the airline, the trade agreement is expected to strengthen economic, investment, tourism and cultural ties between the UK and India while enhancing connectivity across one of the world’s fastest-growing international trade corridors.
Government-led celebrations to mark the implementation of the agreement are scheduled to take place in New Delhi, Mumbai, Bengaluru and London’s Lancaster House, bringing together business leaders and policymakers from both countries.
In the longer term, the UK government estimates that the agreement will increase bilateral trade by £25.5 billion annually, while contributing an estimated £5.1 billion to India’s GDP and £4.8 billion to the UK’s GDP each year.
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