Making the most of the UK's newest Free Trade Agreement: UK-India

July marks an important milestone for UK exporters, with the UK-India Free Trade Agreement officially coming into force on 15th July 2026 after several years of negotiation. 

At a time when global trade remains uncertain, Free Trade Agreements (FTAs) can provide greater certainty, reduce costs and improve competitiveness. But businesses only benefit if they understand the agreement, meet the rules of origin requirements and claim the available tariff preferences.

Our Development Manager, Megan Childs, and Head of International Trade Services, Catherine Stephens, recently attended the Department for Business and Trade's UK-India FTA Roadshow in Cardiff, where businesses heard first-hand about the significant opportunities the agreement presents.

India is now the world's most populous nation, with more than 1.4 billion people across 30 diverse states, each with its own industries, cultures and consumer demand. From advanced manufacturing in Bengaluru to premium British food, drink and consumer goods in Mumbai and Delhi, the opportunities are broad for UK exporters.

The agreement is expected to reduce or eliminate tariffs on around 90% of UK product lines, helping businesses become more competitive in this fast-growing market. Examples include:

• Medical and dental products - tariffs reduced by up to 30.5%
• Cosmetics - tariffs reduced by around 22%
• Whisky and gin - tariffs cut from 150% to 75%

Now is the time to act. With the USA and EU both negotiating their own trade agreements with India, UK businesses have an opportunity to establish a competitive advantage while the UK-India FTA is already in force.

July has also brought good news for businesses trading with Mexico. Following Mexico's ratification of the UK's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), UK businesses can now access preferential trading arrangements with Mexico, creating new opportunities across a wide range of sectors.

Three tips for making the most of an FTA

• Target the right markets. Every country has regional differences, so focus on where demand for your products is strongest.
• Learn from others. Speak to businesses already exporting into your target market and share experiences.
• Don't overlook the rules. Understanding rules of origin and other FTA requirements is essential if you want to claim reduced tariffs and remain compliant.

Need help navigating the new agreements?

Whether you're exporting to India, Mexico or another FTA market, our Free Trade Agreement Utilisation Service can help you identify where duty savings are available, understand the rules of origin and ensure you're claiming preferences correctly. We'll help you turn Free Trade Agreements into genuine commercial advantage rather than missed opportunity.