When we first covered the UK–India Free Trade Agreement in 2025, the agreement had just been signed but the detail and, crucially, the start date were still to follow. That has now changed.
On 17 June 2026, the UK Government confirmed the FTA will enter into force on 15 July 2026. For anyone with India in their supply chain, the window to act is now.
The UK-India FTA is the most economically significant bilateral trade deal the UK has concluded since leaving the European Union, and the most comprehensive trade deal India has ever brought into force.
The headline numbers are substantial. Bilateral trade between the UK and India was already worth £48 billion in 2025. The agreement is forecast to increase that by £25.5 billion a year in the long run, boost UK GDP by £4.8 billion annually, and raise real wages by £2.2 billion.
For businesses, the practical impact breaks down across two directions of trade.
For UK importers from India, 99% of Indian goods will be eligible for duty-free access to the UK from 15 July. The sectors most directly affected are clothing and textiles, footwear, furniture, and food products, categories that represent significant import volumes across retail and consumer goods supply chains.
For UK exporters to India, 90% of Indian tariff lines will be reduced or removed for UK products, with 64% becoming duty-free immediately. This covers approximately £1.9 billion of current UK exports. High-profile beneficiaries include Scotch whisky (tariffs cut from 150% to 40%) and automotive exports (cut from 100% to 10% under quota).
The agreement introduces its own set of FTA preference codes, which will sit alongside the existing Developing Countries Trading Scheme (DCTS) codes that many businesses currently use for India-origin goods. Applying the correct code at the point of declaration matters, using the wrong scheme will result in the wrong duty rate being applied.
The UK Integrated Online Tariff is being updated to reflect the new FTA scheme and preferential rates. In the meantime, the treaty schedules published by the Department for Business and Trade are the definitive source for checking applicable rates by commodity.
Beyond the tariff numbers, the FTA signals a longer-term shift in the competitiveness of India as a sourcing and export market.
India has for some time been positioned as a growing alternative to China for UK importers, particularly in textiles, electronics components, and automotive parts. Duty-free access strengthens that case considerably. It levels the playing field with countries like Vietnam and Bangladesh, which have benefited from preferential UK access under other agreements, and creates a more predictable commercial environment for businesses considering a greater India weighting in their supply base.
For ocean trade, the UK-India corridor spans multiple key gateways, Nhava Sheva (Mumbai), Chennai, and Tuticorin on the subcontinent side, and UK container ports on arrival. Air freight volumes on the route are also material, particularly for high-value, time-sensitive goods in sectors such as pharmaceuticals and electronics. The improved trade environment is likely to support growing volumes across both modes over time.
UK exporters should register with HMRC’s Origin Registration portal as soon as possible. Registration is required before origin statements can be issued to Indian customers, and without it, preference cannot be claimed.
UK importers should engage with their Indian suppliers now to confirm that origin statements will be available on commercial documentation from 15 July onwards. Not all suppliers will be set up for this immediately, and it is worth getting ahead of the conversation.
Businesses should review their commodity classifications against the new FTA tariff schedule to understand where duty savings apply and by how much. Where codes currently attract duty that will move to 0%, landed cost models and supplier pricing should be updated accordingly.
Our customs and trade solutions team has been tracking the UK-India FTA since the agreement was first announced. We are fully prepared for the 15 July entry into force and can help your business ensure the right processes, documentation, and declarations are in place from day one.
If you are an existing Ligentia customer, you can find further guidance in our Customer Hub, including what our team will be doing on your behalf and how to get in touch with any questions.
Our team is here to help you navigate the changes, ensure the right documentation is in place, and identify where duty savings apply to your supply chain.
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