Key facts
- India and Britain's comprehensive trade pact took effect on Wednesday.
- The agreement cuts tariffs on thousands of goods and widens access for services firms.
- Indian exporters gain immediate duty-free access to most British tariff lines, benefiting sectors like textiles and leather.
- Britain gains phased tariff cuts and quotas for sectors such as automobiles, and openings in financial services and education.
- The pact includes a Double Contribution Convention to exempt eligible Indian professionals from Britain's National Insurance for up to five years.
- Indian suppliers gain access to Britain's government procurement market, estimated at £90 billion.
India and Britain's comprehensive trade pact took effect on Wednesday, aiming to boost bilateral trade by cutting tariffs on thousands of goods and widening access for services firms and professionals in both markets. Indian exporters will benefit from immediate duty-free access to most British tariff lines, particularly in labour-intensive sectors like textiles, leather, footwear, marine products, gems and jewellery, and processed foods. Britain gains wider access to one of the world's fastest-growing major economies, with phased tariff cuts and quotas for sectors such as automobiles, and openings in procurement, financial services, education, insurance, and professional services. India's trade minister Piyush Goyal stated the agreement opens "new avenues for trade, investment and innovation," creating opportunities for Indian businesses. Data from India's trade ministry shows India exported $13.44 billion of goods to Britain and imported $11.68 billion in 2025-26, while bilateral services trade totalled $35.44 billion in 2024, with India running a services surplus of nearly $7.9 billion. Britain is set to scrap duties immediately on 96.8% of its tariff lines, covering 97.7% of trade value, while India will remove duties at once on 64.1% of its tariff lines and phase out tariffs on another 21%, excluding sensitive products. Indian officials anticipate gains in sectors previously facing British tariffs ranging from 4% to 20%, including marine exports, textiles, leather, footwear, gems, and jewellery. Britain will benefit from India's calibrated opening in automobiles, with passenger vehicle imports subject to a phased quota system allowing 37,000 completely built units annually at preferential tariffs. The services package expands market access across 137 sub-sectors, including IT, business services, telecoms, finance, and education, and eases temporary entry for business visitors, transferees, investors, service suppliers, and independent professionals. A linked Double Contribution Convention will exempt eligible Indian professionals and employers from paying into Britain's National Insurance system for stays of up to five years, benefiting approximately 75,000 workers and 900 employers. The pact also grants Indian suppliers access to Britain's government procurement market, estimated at about £90 billion, while India offers reciprocal opportunities worth around $114 billion.