The United Kingdom and India have brought into force a landmark free trade agreement that sharply reduces tariffs on goods, marking one of the most significant trade pacts signed by
either country in recent decades.
The agreement, which took effect on 15 July, is expected to give an immediate boost to bilateral trade, currently worth £48 billion a year, by making it cheaper and easier for businesses and consumers in both countries to buy and sell products.
To mark the launch, a shipment of British goods—including cosmetics, food products and alcoholic beverages that now benefit from lower import duties—arrived in Mumbai aboard a British Airways flight. The delivery was unveiled at the British Deputy High Commission by the UK's Trade Commissioner for South Asia, Harjinder Kang, alongside British Airways' General Manager in India, David Wright.
Mr Kang described the agreement as "a watershed moment" in UK-India relations, saying the deal would deliver benefits for businesses and consumers from its first day by making trade "cheaper, quicker and easier."
British Airways said the agreement would strengthen economic ties between the two countries. The airline currently operates 63 weekly flights between the UK and India, with that figure expected to increase to 70 by the end of the summer.
David Wright, the airline's General Manager in India, said the carrier had played a longstanding role in connecting businesses and communities across both countries and was well placed to support increased trade, investment and tourism under the new agreement.
Under the deal, 99% of Indian exports to the UK will now enter duty free, while 90% of UK exports to India will benefit from either zero tariffs or reduced import duties.
The agreement is expected to benefit industries including automotive manufacturing, consumer goods, creative industries, medical technology and advanced manufacturing, representing the biggest step forward in the UK and India's economic partnership to date.
The UK government is marking the agreement's entry into force with business events in New Delhi, Mumbai, Bengaluru and London's Lancaster House, aimed at promoting new commercial opportunities.
Officials estimate the agreement will increase annual bilateral trade by £25.5 billion over the long term, while adding around £4.8 billion to the UK economy and £5.1 billion to India's GDP each year.
