Exporting to the UK from India: Opportunities and Strategies in 2025

India’s trade relationship with the United Kingdom has entered a transformative phase with the signing of a landmark Free Trade Agreement (FTA) in May 2025. This comprehensive deal eliminates tariffs on 99% of Indian exports to the UK, opening significant avenues for Indian businesses, particularly in sectors like textiles, engineering goods, and IT services.

Key Highlights of the India-UK Free Trade Agreement

The FTA is poised to double bilateral trade from $60 billion in 2024 to $100 billion by 2030. For Indian exporters, the agreement offers

Zero-Duty Access: 99% of Indian tariff lines now enjoy zero-duty access to the UK market, benefiting sectors like textiles, leather, marine products, engineering goods, auto parts, chemicals, and gems and jewellery.

• Enhanced Market Access: The deal facilitates easier mobility for professionals, including those in IT, financial services, and education, allowing Indian service providers to gain a competitive edge in the UK market.

Sectors Poised for Growth

1. Textiles and Apparel: With the removal of tariffs, Indian textiles and garments become more competitive against countries like Bangladesh and Vietnam.

2. Engineering Goods and Auto Components: The FTA opens up opportunities for Indian manufacturers of auto parts, engines, and other engineering goods to expand their footprint in the UK.

3. Information Technology and Services: The agreement enhances the mobility of Indian IT professionals and service providers, allowing for greater collaboration and business opportunities in the UK.

Strategic Steps for Indian Exporters

1. Leverage Government Platforms: The Indian government plans to upgrade its Government e-Marketplace (GeM) platform to support global tendering functionalities, facilitating public procurement between India and the UK. @EconomicTimes

2. Understand Regulatory Requirements: Exporters should familiarize themselves with UK standards and certifications, especially in sectors like food, pharmaceuticals, and electronics, to ensure compliance and smooth market entry.

3. Explore Joint Ventures: Collaborating with UK-based companies can provide insights into local market dynamics, consumer preferences, and regulatory landscapes, enhancing the chances of success.

Challenges to Consider

While the FTA offers numerous benefits, exporters should be mindful of:

• Non-Tariff Barriers: Despite tariff eliminations, exporters may face challenges related to regulatory standards, quality certifications, and customs procedures.

• Sectoral Exclusions: Certain sectors, such as legal services, were not included in the FTA, limiting opportunities in these areas. World Economic Forum

Conclusion

The India-UK Free Trade Agreement marks a significant milestone in bilateral relations, offering Indian exporters unprecedented access to the UK market. By strategically leveraging the provisions of the FTA, understanding regulatory landscapes, and fostering collaborations, Indian businesses can capitalize on this opportunity to expand their global footprint and drive economic growth