The countdown begins: UK-India FTA enters into force on July 15th

BFA News

The countdown begins: UK-India FTA enters into force on July 15th

Businesses to start preparations for historic UK-India trade deal worth £4.8bn to enter into force next month.

  • Milestone trade deal with India to come into effect next month, marking quickest ever turnaround following signature
  • Businesses encouraged to prepare for entry-into-force to feel the benefits of massive tariff cuts
  • UK agreement will be the most comprehensive trade deal India has ever brought into force

The UK and India have announced their landmark trade deal will enter into force next month so working people and businesses can benefit.

Businesses, who now have 28 days to prepare for the entry-into-force, will be able to trade under its terms from July 15th, following strenuous efforts to prepare UK and Indian systems. 

The deal, which is the most comprehensive ever agreed by India, will boost UK GDP by £4.8bn, real wages by £2.2bn and bilateral trade by £25.5bn every year in the long run.

Under the FTA, the UK will reduce tariffs on a range of Indian imports, including clothing and footwear.

Business and Trade Secretary Peter Kyle said: 

“We are bringing our landmark trade deal with India into force as quickly as we can, because we want businesses and the public to feel the benefits immediately, including cuts to tariffs of £400m within the first year alone. 

“The deal gives British exporters an edge over international competitors, and I would encourage all businesses to ensure they are properly prepared to allow them to sell to India’s huge market in the years to come.

“This week our UK-India Roadshow will begin travelling across all four nations to promote the incredible new opportunities this deal offers.”

To benefit from the tariff reductions, businesses must register with HMRC. We would now encourage businesses to use the next 28 days to register and ensure they are fully prepared to reap the benefits of this deal.

Notes to Members