The Free Trade Agreement (FTA) between India and the United Kingdom (UK) is going to come into effect from July 15, 2026. Under this agreement, about 99 percent of India’s products will get entry into the UK market without any import duty (duty-free). The government believes that this will give a big boost to Indian exports. However, experts say that the abolition of tariffs alone will not result in a big jump in exports. For this, Indian companies will also have to face many other challenges.
GTRI said, duty-free access alone is not enough
The Global Trade Research Initiative (GTRI) says duty-free access is certainly a big opportunity for Indian businesses, but it is not the whole story. If Indian companies are not able to meet Britain’s strict quality standards, technical rules and certification conditions, then they will not be able to get the full benefits of this agreement.
According to experts, it will be mandatory to follow quality, packaging, labeling and safety standards to sell products in the UK market. Therefore, Indian exporters will have to continuously improve their production process and quality.
Attention will also have to be paid to logistics and supply chain
According to the report, tax exemption alone is not enough to increase exports. Indian companies will have to reduce logistics costs, ensure timely delivery and create a strong supply chain. Apart from this, it will also be important to build long-term business relationships with buyers in Britain.
Experts believe that companies which already have experience of working in the global market can get more benefits from this agreement. Whereas small and medium exporters may need technical and financial support from the government.
Many sectors can get big benefits
Sectors like textiles, readymade garments, gems and jewellery, engineering goods, leather, food processing, auto components and chemicals are expected to benefit the most from the India-UK FTA. With the abolition of duty on these products, Indian goods will become more competitive in the British market.
However, GTRI believes that to convert this opportunity into real success, industries will have to increase their competitiveness. Only if Indian companies perform better on aspects like quality, cost and on-time delivery, the full benefits of FTA will be available to the country’s exports and economy.
This agreement, which will come into force from July 15, will definitely open a new chapter in India-UK trade relations, but its success will depend on how quickly Indian industries are able to adapt themselves to global standards.
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