The UK and India have now formally signed their previously announced new Free Trade Agreement (FTA). This marks the end of negotiations and means that the agreement will be ratified and come into force over the coming months.

India: An Increasingly Important Market

India is already a key trading partner for the UK. The UK already imports £11 billion of goods from India, however, cheaper tariffs will make it easier to buy Indian goods.

This is particularly expected to benefit businesses buying components and materials used in advanced manufacturing components, as well as those buying luxury and consumer goods.

India’s average tariff on UK products will reduce to 3% from 15%. Once the new tariffs come into effect, UK companies selling products to India should begin to find it easier to sell to the Indian market.

Business leaders have welcomed the agreement. William Bain, Head of Trade Policy at the British Chamber of Commerce, said: “Currently around 16,000 UK companies are trading goods with Indian companies, and there is high interest in our Chamber Network to grow that. This deal will create new opportunities in the transport, travel, creative and business support sectors alongside traditional strengths in finance and professional services.”

See: https://www.gov.uk/government/news/prime-minister-secures-thousands-of-british-jobs-and-6-billion-in-investment-and-export-wins-as-historic-trade-deal-with-india-signed