This week’s announcement of a landmark UK–India Free Trade Agreement represents a significant shift for global trade and for many Ligentia customers, it’s a moment of real opportunity.
The UK has agreed to eliminate import tariffs on 99% of goods coming from India, opening the door to more cost-efficient sourcing strategies across retail, automotive, textiles, electronics, and health sectors. With many of our customers already importing from India, this change isn’t just welcome – it’s potentially transformational.
At Ligentia, our role is to help you turn complexity into clarity. So here’s what this deal really means in practical terms – and how we’ll help you unlock the benefits.
Until now, many products imported from India have attracted an average import duty of around 9%, sometimes as high as 16%. Under the new agreement, those tariffs will drop to 0%, either immediately or through phased reductions.
We’ve mapped the tariff changes across the sectors our customers operate in. Here’s a look at the key wins:
| Sector | Products Affected | Current Duty | New Duty | Impact |
| Retail | Apparel, footwear, processed food | 12–16% | 0% | Lower landed costs, improved margin, increased sourcing appeal |
| Automotive | Components, machinery, limited vehicles | 2–10% | 0% (some quotas) | More competitive sourcing of parts and select vehicles |
| Textiles | Fabrics, yarns, home textiles | 5–8% | 0% | Stronger case for India as a textile source |
| Electronics | White goods, components, cables, lighting | 2–10% | 0% | Cleaner cost structure, broader supplier options |
| Healthcare | APIs, medical devices, wellness goods | 6–20% | 0% | Duty-free access to high-quality health imports |
This is an opportunity for businesses to rethink and optimise their supply chain strategies. Here’s how Ligentia can help you respond proactively.
We’re already working with customers to benchmark what they’re currently paying in duty, and what they could be saving.
It’s critical to apply the correct tariff codes and rules of origin to ensure you benefit from the new rates. Our customs compliance team can work with you to ensure proper classification and documentation.
India just became significantly more competitive. Whether you’re already sourcing from the region or considering diversification, we’ll help model how the new duty-free status impacts your cost-to-serve, risk profile, and lead time strategy.
Not all tariff eliminations will apply on day one. We’re monitoring ratification timelines and any phased reductions, so you’ll know exactly when and how to act. We’ll also ensure your internal systems are updated in sync.
India is already a key global sourcing destination, and this trade deal raises the bar. It levels the playing field with countries like Vietnam and Bangladesh, which have enjoyed better trade access to the UK under other agreements.
For Ligentia customers, this is about more than just saving on duty. It’s about:
As your global supply chain partner, Ligentia is here to help you turn this trade policy shift into a strategic advantage. Whether it’s recalibrating your import mix, ensuring compliance, or fast-tracking new sourcing routes – we’re ready.
Ready to transform your supply chain?
Connect with us today to explore how you can maximise the benefits of the UK–India FTA.
