UK-India Free Trade Agreement

UK-India Free Trade Agreement - House of Commons Library

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UK-India free trade agreement
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Download ‘UK-India free trade agreement’ report (497 KB
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Negotiations for a UK free trade agreement with India were
launched in 2022
.
The agreement was signed in 2025
.

The
UK exported £19 billion of goods and services to India
in the year to September 2025 (2.0% of total UK exports).
UK imports from India were £28 billion
(3.0% of the total).

The agreement aims to reduce barriers to trade between the UK and India. The Indian market is currently protected by
high tariff (PDF)
and
non-tariff barriers
.

Main provisions

The UK and India have agreed to cut tariffs (import taxes) on goods traded between them. The UK Government estimates that
the agreement will reduce tariffs on UK exports to India by up to £400 million a year
when it comes into force, potentially increasing to £900 million after 10 years.
Commentators have noted that the Indian tariff cuts are phased in over a number of years
while Indian exporters gain immediate access to the UK in many cases. The agreement’s provisions on services are relatively limited.

Economic effects

The
government estimates that the FTA will increase UK GDP by 0.13% (£4.8 billion)
in the long run. This is a larger boost to GDP than the other post-Brexit FTAs negotiated from scratch (Australia, New Zealand and CPTPP). There is, however, considerable variation between different sectors of the economy. All countries and regions of the UK are estimated to see an increase in economic output.

Stakeholder views

Business organisations were broadly in favour of the agreement. The
National Farmers’ Union welcomed certain aspects of the agreement
but was critical of others. It was pleased with the increased opportunities to export lamb but raised concerns about the dairy sector. Civil society organisations welcomed parts of the agreement but expressed concerns about others, such as provisions on labour rights and the environment.

Parliamentary scrutiny

The
Lords International Agreements Committee
described the agreement as “a significant achievement” but noted shortcomings in the time it would take for the full benefits for UK exporters to come through, the limitations of the provisions on services and the omission of some UK interests.

The
Commons Business and Trade Committee
described the FTA as “the UK’s most economically significant bilateral free trade agreement since leaving the European Union.” It noted, however, that the agreement’s potential would only be realised if it were implemented successfully.

The agreement was
debated in the House of Commons
on 9 February 2026.

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Documents to download

UK-India free trade agreement
(497 KB
, PDF)

Download full report

Download ‘UK-India free trade agreement’ report (497 KB
, PDF)

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