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The signing of the UK-India Free Trade Agreement (FTA) in 2025 has ushered in a new phase of economic cooperation between the two nations. This landmark deal, designed to ease tariffs, improve market access, and enhance regulatory alignment, is expected to reshape trade dynamics across both goods and services. As we analyze recent trade data from the Office for National Statistics, we uncover the realigned contours of this relationship—one that is increasingly strategic, digital, and services-driven.

Goods Trade: Recalibrating Supply Chains

UK Exports to India: Traditional Strengths, New Opportunities

The UK’s export profile to India remains anchored in resource-oriented sectors, with non-ferrous metals leading at £2.0 billion. This is followed by metal ores & scrap (£0.9 billion) and mechanical power generators (£0.5 billion). These numbers reflect the UK’s continued role in supporting India’s industrial and infrastructure expansion.

However, under the FTA framework, these traditional sectors are poised for value-chain upgrades. With reduced tariffs and simplified standards, UK exporters can now explore downstream partnerships in India’s automotive, renewable energy, and electronics sectors.

India’s Goods Exports to the UK: Value-Added and Scalable

India’s exports to the UK tell a story of specialization. Refined oil tops the chart at £1.3 billion, showcasing India’s growing capabilities in energy processing. Clothing (£0.9 billion) and telecom equipment (£0.7 billion) reflect India’s dominance in labor-intensive and mid-tech manufacturing.

The entry of pharmaceuticals (£0.7 billion) and iron & steel (£0.5 billion) into the top export categories underscores India’s movement up the industrial value chain. With the FTA eliminating several regulatory barriers, India is now well-positioned to export branded generics, specialty textiles, and intermediate goods at greater scale and with higher margins.

Services Trade: The Powerhouse of the Bilateral Relationship

UK Services Exports to India: Growth, But with Gaps

The UK’s largest service export to India is travel, amounting to £7.2 billion. This is driven by India’s rapidly expanding middle class, educational exchanges, and health tourism. Other categories like transportation (£0.6 billion), telecom and IT services (£0.3 billion), and intellectual property (£0.3 billion) show modest figures, indicating unrealized potential.

The FTA opens doors for UK legal, architectural, and fintech services to tap into India’s booming digital economy and startup ecosystem. Mutual recognition of professional qualifications is expected to further support this transition.

India’s Services Exports to the UK: Clearly Dominant

India’s services exports to the UK total £9.2 billion under “Other Business Services,” encompassing IT, outsourcing, consultancy, and financial back-office services. This is complemented by travel (£2.5 billion) and telecom/IT services (£2.0 billion), reaffirming India’s strength in knowledge-based industries.

Post-FTA, this dominance is expected to deepen, as visa norms ease for service professionals and data mobility frameworks become clearer. India’s service firms can now confidently scale their UK presence in sectors such as cybersecurity, AI-driven analytics, and blockchain solutions.

Strategic Takeaways in the FTA Context

1. Services-Led Bilateral Synergy: With India’s dominance in services and the UK’s interest in expanding financial and legal services, the FTA establishes a two-way expressway. Sector-specific collaborations, especially in fintech, healthtech, and edtech, are likely to flourish.


2. Tariff Recalibration for Goods: Reduced tariffs on both sides can shift trade volumes and trigger investments in integrated supply chains, especially in auto components, electronics, green technologies, and processed food.


3. Digital Trade and IP Frameworks: The inclusion of digital trade provisions—such as recognition of electronic contracts and data protection standards—provides much-needed clarity and predictability for tech startups and digital exporters.


4. SME Participation and Market Diversification: With procedural simplifications, SMEs from both countries now have more access to export financing, trade facilitation, and market intelligence. This is vital to democratize the FTA’s benefits.


5. Mutual Upskilling: The agreement emphasizes capacity building and knowledge transfer, especially in sectors like clean energy, digital infrastructure, and advanced manufacturing.

A Future of Integrated Growth

The 2024 UK-India Free Trade Agreement is not merely a policy milestone—it is a directional shift in how two economies engage in a post-Brexit, post-pandemic global order. The current trade data offers a snapshot of potential that is now backed by a strategic framework.

Going forward, the success of this agreement will depend on how swiftly industries, especially SMEs and tech firms, seize the new openings. The road ahead will be defined by how effectively both nations transition from transactional trade to transformational partnerships.