UK-India trade deal: What it means for your business

After more than three years of negotiations and multiple changes in government, the UK and India have finally signed a trade deal that’s expected to boost the UK economy by £4.8 billion a year by 2040.

This is a big step forward in building stronger international trade ties post-Brexit – and if your business trades internationally or plans to in the future, it could be good news.

Key highlights:

• Tariffs slashed on 90% of UK product lines going to India – including popular goods like whisky, gin, chocolate, biscuits, cosmetics, lamb, salmon, soft drinks, aircraft parts, medical devices and electrical machinery.

• For context, this could save UK exporters £400 million a year, starting immediately.

• Tariffs on British whisky and gin (previously 150%!) will fall to 75% straight away and drop further to 40% over the next 10 years.

• British-made cars will also see tariffs fall from 110% to 10%, though there are limits on how much can be exported under these new rates.

• In exchange, the UK will lower tariffs on Indian imports like clothing, footwear and food – meaning we could see more choice and lower prices on our shelves.

• A reciprocal tax exemption is also included for employees temporarily sent between the two countries – no national insurance contributions for up to three years. It’s a controversial point in the UK, but a major win for India and a sticking point that held up talks.

Why it matters

Trade agreements like this are long-term, big-picture moves. If you’re already exporting – or thinking about expanding internationally – this could open up new opportunities, especially in sectors like food and drink, consumer goods and automotive.

It’s also a reminder that global markets keep shifting, and businesses that keep an eye on policy changes often find advantages others miss.

If you’re curious how this might affect your plans or want help exploring new markets, let’s talk.