The Free Trade Agreement, FTA between the UK and India signed on 24 July 2025 is “a catalyst for growth for both countries”.
This was my opening remark at the Federation of Indian Chambers of Commerce & Industry – FICCI Forum of Parliamentarians (FOP) delegation’s interaction kindly hosted by Brunel University of London on 12 September 2025 with business leaders, academics, professionals, Hillingdon Council, and Indian students.
The FTA, which is subject to ratification by both Parliaments and is expected to begin to deliver from early 2026 onwards, will eliminate tariffs on most goods, ease market access for services and lead to billions in new trade and investment.
Indian companies will gain greater entry into the UK market, while British exports ranging from food and beverages to high-end engineering products will see tariffs slashed in India. Here are some highlights:
- The deal will boost trade by an additional £25.5bn a year by 2040 (£42bn last year).
- The UK will lower taxes on goods imported from India on clothing and footwear, food products including frozen prawns, jewellery and gems and some cars.
- India will lower taxes on goods imported from the UK including cosmetics, scotch whisky and gin, soft drinks, higher-value cars, food – lamb, salmon, chocolate and biscuits, medical devices, aerospace, and electrical machinery.
FICCI, with whom we have a longstanding partnership, is the largest and oldest apex business organisation and the voice of business and industry in India.
The Forum of Parliamentarians (FOP) is a unique initiative within FICCI and engages at the bilateral and multilateral levels through inbound and outbound delegations and exchanges with elected representatives, industry, policy experts, think tanks, universities, media, and counterpart organisations across the globe. FOP’s objective is to promote soft-power diplomacy and to ensure engagement of diverse political landscapes for exchange of best political and business practice.
India is expected to be the third largest economy in the world in the next few years, with each of its states focusing on development and growth of Tier 1, 2 and 3 cities. This can help to complement the UK Government’s Industrial Strategy and economic growth across all regions.
For information on how to explore business and investment opportunities between the UK and India, or questions about the FTA, please email ash@ashverma.com
