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Prime Minister Kier Starmer is set to meet with Prime Minister Narendra Modi of India today, 24th July 2025, for the signing of the UK-India Trade Agreement. The agreement will then move to be ratified in parliament before coming into force, enabling both countries to trade under its terms.
The new trade agreements are set to create thousands of British jobs through new Indian investment and export markets worth almost £6 billion. Nearly £6 billion in new investment and export wins, which will create over 2,200 British jobs across the country as Indian firms expand their operations in the UK and British companies secure new business opportunities in India. These deals will drive jobs in high-growth sectors, such as aerospace, technology, and advanced manufacturing, supporting engineers, technicians, and supply chain workers across the UK.
The UK already imports £11 billion in goods from India, but liberalised tariffs on Indian goods will make it easier and cheaper to buy their best products. For businesses, this could mean potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods.
India’s average tariff on UK products will drop from 15% to 3%, which means British companies selling products to India, ranging from soft drinks and cosmetics to cars and medical devices, will find it easier to sell to the Indian market.
Whisky producers will benefit from tariffs being slashed in half, reduced immediately from 150% to 75%. This immediate reduction, once the FTA is ratified, will give the UK a competitive advantage over international competitors in accessing the Indian market, sparking excitement and anticipation among whisky producers.
The full text of the agreement has now been published and can be accessed at the following link, along with the Chapter on Rules of Origin, which is also available for viewing.
Important: The agreement has not yet come into force; once ratified by both countries, businesses will be able to trade under its terms.
UK-India CETA Chapter 3: Rules of Origin
The two Prime Ministers have also signed a renewed Comprehensive and Strategic Partnership. This partnership is expected to see closer collaboration on defence, education, climate, technology, and innovation, in addition to efforts to tackle organised crime and illegal migration.
UK-India Free Trade Agreement Business Mobility.
As part of the UK-India Trade Agreement, the two countries have agreed on a chapter on business mobility, which will secure access for short-term business travel to and from India and the UK. This will give UK businesses and professionals a guarantee that existing access to the Indian market will continue.
Northern Ireland Press Release
UK-India Free Trade Agreement and Impact on Industrial Strategy Sectors
Prime Minister Keir Starmer said:
“Our landmark trade deal with India is a significant win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.
We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.”
Secretary of State for Northern Ireland, Hilary Benn, said:
“This is a landmark deal that will bring real benefits for businesses and workers in Northern Ireland.
Northern Ireland’s advanced manufacturing, engineering, and medical technology sectors will see tariffs eliminated or significantly reduced, while Irish whiskey producers will benefit from substantial cuts in duties, allowing for increased trade with India.
This agreement will help further unlock the huge potential for growth across Northern Ireland, including its thriving services and technology sectors.”
Focus On: Understanding Free Trade Agreements
This session is essential as the UK develops independent trade arrangements to boost imports and exports. It covers foundational concepts of FTAs and PTAs and examines their structure, purpose, and key elements, like rules of origin, with emphasis on the EU-UK Trade and Cooperation Agreement (TCA). This course empowers professionals to navigate international trade confidently and leverage FTAs for a competitive advantage.
Understanding Origin & Preference
This interactive workshop clarifies the difference between origin and preferential origin, emphasising their role in trade compliance. Through case studies and exercises, participants will learn about essential documentation, declarations, and compliance verification for preferential rules in trade agreements. With the increase in HMRC audits, this session equips businesses with the skills to confidently manage origin determination and ensure compliance in both import and export activities.
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