The UK government on Monday highlighted the unlocking of new deals worth 1 billion pounds as the first major British delegation landed in India with a mission to maximise the benefits flowing from the bilateral Free Trade Agreement (FTA).
Over 100 businesses from a range of sectors have travelled with UK Business Secretary Jonathan Reynolds, Scotland Secretary Douglas Alexander and Environment, Food and Rural Affairs Secretary Angela Eagle alongside seven mayors from Northern England.
The so-called Great North mission comes almost three months on from the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA) on July 15.
India UK Free Trade Agreement (FTA) aims to double bilateral trade to USD 120 billion by 2030. India UK partnership (vision 2035) seeks to expand trade and build a long-term strategic partnership between two nations.
The Bilateral trade between India and the UK is expected to grow by approximately £25.5 billion annually by 2040, with the UK economy potentially gaining £4.8 billion each year.
India’s Tariff Concessions: India will reduce tariffs on around 90% of UK exports, with most products expected to become duty-free over the next decade.
Import duties on whisky and gin will fall from 150% to 40%, while tariffs on UK cars will drop from over 100% to 10%, subject to quota limits.
UK’s Tariff Concessions: The UK will eliminate duties on approximately 99% of Indian exports, benefiting sectors such as textiles, leather, engineering goods, marine products, gems and jewellery.
Services and Professional Mobility: The Free Trade Agreement (FTA) introduces a 'Double Contribution Convention,' exempting eligible professionals on short-term assignments from paying social security contributions in both countries. The provision is expected to reduce costs and facilitate professional mobility.
Access to Government Procurement: UK companies will gain access to India’s government procurement market in sectors including transport, healthcare and energy, subject to specified regulatory conditions.
Simplified Customs Procedures: Both countries will streamline customs processes through greater transparency, electronic documentation, harmonised sanitary standards and faster clearance of goods. Small and medium enterprises (SMEs) will receive additional support to facilitate cross-border trade.
Easier Rules of Origin: Exporters will be allowed to self-certify the origin of their goods, reducing paperwork and administrative delays. UK importers can rely on exporters’ declarations to establish product origin.
Relief for Small Shipments: Consignments valued below £1,000 will not require origin documentation, easing trade for e-commerce businesses and smaller exporters.
Sector-Specific Origin Rules: Product-specific rules of origin will be aligned with India’s supply chains in sectors such as textiles, machinery, pharmaceuticals and processed foods.
India–UK Vision 2035: The new strategic framework will replace the earlier India–UK Roadmap 2030, establishing shared objectives in economic cooperation, technology and diplomacy.
Unresolved Issues: Certain sensitive matters remain outside the scope of a complete resolution, including India’s restrictions on foreign legal services and limited changes to visa quotas affecting professional mobility.
Concerns Over UK’s Carbon Border Mechanism: The UK’s Carbon Border Adjustment Mechanism (CBAM) could increase compliance costs and place an additional financial burden on Indian exporters.
Department for Environment, Food and Rural Affairs (DEFRA) minister Angela Eagle said: "This government's landmark deal with India opened the door to one of the world's fastest-growing markets and we are working to turn its commitments into outcomes for British farmers and food and drink companies.
"We're in India alongside food and drink exporters helping them showcase the best of British produce, build new trading relationships, and unlock the export opportunities for communities across the UK."
During the visit, Reynolds is set to meet his Indian counterpart, Piyush Goyal, in Delhi and co-chair the UK-India Joint Economic and Trade Committee (JETCO).
He will also co-chair the UK-India Science and Innovation Council alongside Minister for Science and Technology Jitendra Singh.
In Mumbai, the Business Secretary will meet the Chief Minister of Maharashtra, Devendra Fadnavis, to launch closer regional economic cooperation.
He is also set to attend a major trade marketplace showcasing innovative British products and services in this exciting and fast-growing market.