United Kingdom-India Free Trade Agreement: a strategic turning point for both economies

As the European Union resumes trade negotiations with India (cf. EU and India hope to conclude a free trade agreement by the end of 2025), the United Kingdom just signed a free trade agreement with that country on 6 May 2025, after many years of talks.
This agreement illustrates London's commitment to redesign its business partnerships in the post-Brexit era, building on fast-growing economies such as India. For New Delhi, this is a new step towards greater market opening and a rise in global value chains. It's a win-win strategic choice in a world where trading blocks quickly recompose.

The main provisions of the Agreement:

• Progressive tariff dismantling The agreement provides for a very significant reduction or even elimination of customs duties on a large part of bilateral trade. UK exports to India, notably for whisky, cosmetics and high-end food products, will benefit from wider access. India, for its part, will see its textile products, jewellery and manufactured products enter the UK on more advantageous terms.

• Facilitation of automotive flows The automotive sector, which is strategic for both countries, will benefit from a reduction in customs duties, particularly on high-end vehicles, allowing certain iconic brands to better position themselves on the Indian market.

• Increased professional mobility The agreement includes provisions for the circulation of talent. It facilitates approaches for seconded professionals, investors, specialized technicians or business visitors, which should help to smooth up business-to-business cooperation and support the knowledge economy.

• Flexibility in social security : Indian companies that temporarily second staff to the UK will benefit from an exemption from social security contributions, thereby reducing their administrative and financial burden.