• Szymon Komuda

Trade deals aren’t just about politicians shaking hands — they’re about creating real opportunities for businesses like yours. With the UK and India signing their landmark Free Trade Agreement (FTA) in July 2025, we’re standing on the edge of one of the most transformative commercial partnerships of the decade.

Whether you’re exporting whisky or building out a professional services arm, this agreement could be your golden ticket to saving money, expanding markets, and boosting competitiveness.

If you are yet to export anything to India, now is your time.

👉With offices at the centre of the UK and India, Optimyze is perfectly placed to help you capitalise on this new opportunity. Don’t miss out—click here to get started today.

Here’s your chance for growth

At its heart, the UK–India FTA is about helping you save money and grow. India will slash tariffs on 90% of UK tariff lines, with 64% tariff-free immediately and 85% tariff-free within ten years¹. That means if you’re exporting high-value goods — whisky, luxury cars, machinery, or medical devices — your products instantly become more affordable for Indian customers, boosting your competitiveness overnight.

What’s the problem?

Before this agreement, UK exporters faced steep barriers. Whisky carried a 150% tariff¹, more than doubling the price on Indian shelves. Luxury cars were subject to duties as high as 110%¹, shutting out most buyers. Even basic goods like cosmetics and consumer items were burdened with tariffs of up to 22%¹. For many UK firms, India felt out of reach — too costly, too complicated, and too regulated.

Implications that bring it to life

So what changes now? Let’s walk through a few examples:

• Whisky & Spirits: Tariffs drop from 150% → 75% (day one) → 40% (year ten)². A bottle of Scotch that once seemed unaffordable now becomes accessible to India’s growing middle class.
• Automotive & EVs: Car tariffs fall from over 100% to 10% under quota¹. Initially this applies to combustion-engine cars, then shifts to electric and hybrid vehicles — right in step with the UK’s automotive future. For brands like Jaguar Land Rover and Aston Martin, this isn’t just a win — it’s a rebirth in a billion-plus consumer market.
• Medical Devices & Life Sciences: Tariffs on surgical, dental, and veterinary instruments are eliminated or reduced³. If you’re in life sciences, this means lower export costs and greater trust in UK innovation in India’s fast-expanding healthcare sector.
• Cosmetics & Consumer Goods: Tariffs of up to 22% on soaps, creams, and perfumes are slashed⁴, opening doors for British brands to tap into India’s booming consumer market.
• Professional Services & Mobility: Accountants, engineers, architects, and consultants can now operate in India without having to establish costly local subsidiaries (with recognition of professional qualifications to match)¹.

Each of these changes means something tangible for your business: lower costs, bigger margins, and access to a market eager for premium UK goods and expertise.

Possible solutions

So, how can you seize the opportunity? Here are some strategies:

• Recalculate your pricing models. With tariffs falling, you can adjust prices to gain market share while protecting margins.
• Explore new market entries. If India once seemed too costly, now’s the time to reconsider. The playing field has shifted in your favour.
• Strengthen your India strategy. Whether in spirits, autos, life sciences, or consumer goods, plan your market approach now to hit the ground running when the FTA takes effect.
• Leverage professional mobility. Use new recognition schemes to expand your service offerings into India without heavy setup costs.
• Stay informed and compliant. Know the tariff schedules, timelines, and requirements so you don’t miss out while competitors move ahead.

Conclusion

The UK–India Free Trade Agreement isn’t just another political headline — it’s your entry ticket into one of the most dynamic consumer markets in the world. With tariffs falling, services opening, and mobility expanding, UK businesses have an unprecedented chance to cut costs, boost exports, and build a strong presence in India.

👉If you’re interested in exploring the possibilities of this new ground breaking opportunity, click on this link to get started with us.

Bibliography

¹ GOV.UK – Department for Business and Trade. UK–India free trade agreement: signing announcement (July 2025). Available at: https://www.gov.uk/government/news/uk-india-free-trade-agreement-signed-july-2025 ² Reuters. UK, India sign landmark free trade deal cutting whisky and car tariffs (July 24, 2025). Available at: https://www.reuters.com/world/india/uk-india-sign-free-trade-deal-2025-07-24 ³ The Guardian. India opens its market to UK services and life sciences in FTA (July 2025). Available at: https://www.theguardian.com/business/2025/jul/25/india-uk-free-trade-deal-services ⁴ Hogan Lovells. Commentary on the UK–India Free Trade Agreement (2025). Available at: https://www.hoganlovells.com/en/insights/uk-india-fta-2025

How we can help?