On May 6, 2025, the United Kingdom and India signed a historic Free Trade Agreement (FTA) that significantly lowers trade barriers and opens vast new opportunities for UK companies seeking to expand into India—one of the world’s fastest-growing major economies.
This agreement marks a new era in bilateral economic ties and is set to transform how British companies approach market entry, sales expansion, and strategic partnerships in India.
Why UK Companies Should Act Now
India is projected to become the world’s third-largest economy by 2030. With its rapidly growing middle class, urbanisation, and demand for high-quality products and services, India presents a strategic growth market. The new FTA makes entering and operating in India far more attractive for UK exporters, investors, and service providers.
Key highlights
- Tariff Elimination on 90% of UK Exports: Sectors such as automotive, alcoholic beverages, machinery, and medical devices now enjoy significantly lower or zero tariffs.
- Scotch Whisky Duties Cut from 150% to 40% Over 10 Years: A massive boost for UK spirits brands aiming to grow in a premium market.
- Automotive Duty Reduction from 100% to 10%: Improves pricing competitiveness for British car and component manufacturers.
- Easier Professional Mobility: UK firms can now deploy skilled professionals to India more easily, with mutual recognition of qualifications in law, accountancy, architecture, and IT.
- Access to India’s £38 Billion Public Procurement Market: UK businesses can now bid on Indian government tenders under transparent and non-discriminatory rules.
What This Means for UK Exporters and Investors
The FTA goes beyond just tariff cuts—it lowers regulatory barriers, simplifies customs processes, and builds a more predictable trade environment. For British SMEs and mid-sized companies, especially those entering India for the first time, this can significantly reduce the cost, time, and complexity of doing business.
Key sectors poised for growth
- Premium Consumer Goods: Lower tariffs on food, beverages, cosmetics, and fashion create competitive pricing opportunities.
- Clean Tech and Green Energy: The FTA supports sustainability goals, creating space for UK innovation in ESG-driven sectors.
- Education, Healthcare, and Digital Services: Rising demand and relaxed regulations make these high-growth areas for UK service providers.
Challenges to Navigate
Despite the FTA’s benefits, India remains a complex market. Local regulations, cultural nuances, and diverse consumer preferences require informed planning and expert execution.
Areas where UK companies must stay vigilant:
- Rules of Origin Compliance: To claim duty exemptions, goods must meet specific local content requirements.
- Phased Implementation Timelines: Not all benefits are immediate; a strategic roadmap is crucial.
- Operational Complexity: Tax structures, supply chain adjustments, and documentation need local expertise.
How Maier Vidorno Altios Can Help
With 30+ years of experience supporting UK and European companies in India, Maier Vidorno Altios helps you convert FTA opportunities into real-world business results. We don’t just advise—we execute.
Our UK-to-India Expansion Services Include:
- Market Entry Strategy: Identify the right sectors, customers, and go-to-market models for your brand.
- Regulatory and Compliance Support: Navigate rules of origin, certifications, tax implications, and customs procedures.
- Local Talent and HR Solutions: Recruit and deploy skilled professionals in line with new mobility provisions.
- Public Procurement and Bidding: Position your business to win Indian government contracts.
- M&A and Joint Ventures: Find and vet local partners, and manage due diligence and post-deal integration.
First Movers Will Win
The India–UK Free Trade Agreement is a once-in-a-generation opportunity for UK businesses to expand into a dynamic, high-growth market with reduced friction and lower costs. Those who act early will benefit from first-mover advantages and stronger brand recognition in India.
At Maier Vidorno Altios, we help UK companies enter, grow, and succeed in India—confidently and compliantly.
Contact us today to explore how your business can unlock India under the new FTA framework.
