Jonathan Reynolds described the India agreement as a “generational achievement” and highlighted that the UK had “already secured the best deal India has ever agreed to.”
British businesses are poised to gain unprecedented access to the Indian market following the recently concluded Free Trade Agreement (FTA) between the UK and India, hailed by officials in London as the “best deal India has ever agreed to”.
Announcing the developments on Wednesday, the UK’s Department for Business and Trade (DBT) said the deal will make trading with India “quicker, cheaper, and easier”, with far-reaching benefits for British exporters in key sectors ranging from whisky and gin to cosmetics, medical devices, advanced machinery and lamb.
Business and Trade Secretary Jonathan Reynolds convened the first meeting of a revamped Board of Trade to outline how the FTA would feed into a broader push to boost exports and grow the UK economy. “Today marks the beginning of a new chapter for British trade,” said Reynolds. “This Board isn’t just a talking shop – it’s a hands-on, dynamic force that will help businesses of every size access global markets and seize the opportunities created by our landmark trade deals.”
Reynolds described the India agreement as a “generational achievement” and highlighted that the UK had “already secured the best deal India has ever agreed to” – a reference to the breadth of tariff reductions and regulatory access granted to British firms. He also linked the India pact with the UK’s recent deal with the United States, which slashed tariffs for the British steel and automotive sectors.
£25 Billion Boost in Trade Anticipated
According to DBT projections, the UK-India FTA is expected to raise bilateral trade by £25.5 billion annually in the long term, with British exports to India across multiple sectors gaining new momentum. In 2024 alone, the UK exported nearly £300 million worth of food and drink to India. Under the new agreement, British whiskies, gin, lamb and soft drinks are set to become even more competitive in the fast-growing Indian market.
Karen Betts, Chief Executive of the Food and Drink Federation, said the FTA was “a significant opportunity for British producers” and would “strengthen supply chain resilience and competitiveness” by giving manufacturers easier access to ingredients produced in India.
Improved customs procedures and a commitment to digital documentation are at the heart of the new framework, a move that is expected to help SMEs—small and medium-sized enterprises—navigate the complex logistics of cross-border trade. “Trading with India will be quicker, cheaper, and easier thanks to improved customs processes and by promoting digital systems, which will be particularly important for SMEs who may have otherwise been unable to break into the Indian market,” DBT said in a statement.
Strategic Trade Partnership with India
Bill Winters, Group Chief Executive of Standard Chartered and Co-Chair of the UK-India Financial Partnership, called the deal “a significant achievement” that would “drive growth and innovation across the UK-India corridor” while creating new opportunities for both countries.
The FTA comes after months of intense negotiations, culminating during the visit of India’s Commerce and Industry Minister Piyush Goyal to London earlier this month. The final contours of the deal were settled in high-level meetings between Reynolds and Goyal, with both sides agreeing on wide-ranging tariff reductions, regulatory harmonisation, and dispute resolution frameworks.
The deal also dovetails with a broader UK trade strategy aimed at diversifying markets post-Brexit and aligning with dynamic economies in Asia. India, with its growing middle class and projected status as the world’s third-largest economy by the end of the decade, has been a top priority.
New Board of Trade Takes Shape
Wednesday also marked the first meeting of the UK’s revamped Board of Trade, tasked with guiding trade policy and export promotion strategies. The board includes figures such as BT Group Chief Executive Allison Kirkby, entrepreneur Mike Soutar, and Michelle Ovens, founder of Small Business Britain.
“The energy in the room was encouraging,” said Ovens. “Almost all businesses in the UK are small businesses, and they have a major impact on the economy, employing millions and creating and supporting communities.”
The board will advise on the government’s forthcoming Trade Strategy and Small Business Strategy, ensuring alignment with its economic growth agenda. It will also play a role in publicising the benefits of the India and US trade agreements to British firms that may not yet be tapping into global opportunities.
The UK-India FTA follows closely on the heels of the UK’s renewed trade agreement with the United States under President Donald Trump, which the Labour government led by Prime Minister Keir Starmer claims will help protect over 320,000 jobs in the UK’s steel, aluminium, aerospace, automotive and pharmaceutical sectors.
As Britain recalibrates its global trade ties, the government is positioning the India deal not just as a diplomatic success but as a foundation for long-term economic expansion.
