The new UK-India Free Trade Agreement – a significant development for both nations

Earlier this week, on 6 May 2025, the UK and India signed a landmark Free Trade Agreement (FTA) – the most significant since Brexit and the fruit of three years of talks and negotiations. 

Touted as a ‘Deal for Growth’ by the UK government, the FTA aims to deepen economic ties and create a range of benefits and opportunities for both nations.  

What does it entail?

The range of what is agreed under the FTA is significant. 

It includes a reduction by the UK of taxes on imported goods from India, including clothing and footwear, gems and jewelry, food products and, to an extent, cars.

India has also cut taxation of goods imported from the UK, including certain beverages (whisky, gin and soft drinks), cosmetics, luxury cars, food (including salmon, lamb, chocolate and biscuits), medical devices, aerospace products and some machinery.

A positive step

This is an extremely positive development for businesses and individuals who are, or wish to be, active in the region– one that was long-awaited, and that the previous government worked on for many years. It’s an exciting opportunity for both nations and we are pleased to see it carried forwards.

During our recent trips to India, we’ve been struck by the sheer amount of activity across sectors -particularly in Infrastructure and Retail, but in a number of others too – and the increasing influx of Western brands into the country. There is a palpable sense of energy, and evidence of consistent progress and evolution. 

We expect that this week’s FTA is just a first step, and that there is much more to come in terms of India-UK relations. In the current geopolitical climate, India has to build its relationships with friendly nations just as much as we do.

Private Capital

We also expect this Free Trade Agreement to lead to an increase in the mobility of private capital between the two countries. In recent years, there has been an influx of private capital both from the UK into India, and from India into the UK, and we have observed increasing activity from international investors. The number of family offices in India has grown exponentially (from just 45 in 2019 to over 300 in 2024 by some estimates). This new agreement only serves to increase the number of attractive opportunities available to investors, and will further position India and the UK as private capital hubs and attractive locations to invest capital and do business.

In summary

The FTA is a game-changer for both nations. It is a clear statement of intention to individuals, businesses and investors of how the two countries want to work together moving forwards. This can only be good for business in both countries, and we expect it will act as a stimulant for transactions and business activity across a number of sectors. It will facilitate greater levels of trade, which will likely act as a positive counterbalance to some of the shortfalls created by US tariffs. 

This week’s news represents a big step in changing India’s approach to global trade. It is an incredibly positive development that will present a range of new opportunities for individuals, families, businesses and investors, and we look forward to speaking with clients, intermediaries and others in our international network about opportunities flowing from the FTA in the months to come.