The trade deal agreed between the UK and India in 2025 has come into effect, as of 15 July 2026.
The deal is expected to boost the economy and provide easier access to British and Indian products and services across both countries.
Business owners must start acting so that they can be at the forefront of this monumental trade deal.
What is the trade deal?
The UK-India trade deal is a free trade agreement designed to make it easier, cheaper and quicker for businesses in both countries to trade with each other.
The deal reduces trade barriers by cutting tariffs on most goods moving between the UK and India.
This opens opportunities across sectors including manufacturing, automotive, food and drink, healthcare, technology and the creative industries.
It also introduces simpler customs processes, supports digital trade through paperless systems and gives businesses greater certainty when operating in each market.
UK firms will gain improved access to India’s government procurement market, while both countries have agreed measures to support professional mobility and make exporting easier for SMEs.
How will the trade deal benefit UK SMEs?
For SMEs, one of the biggest advantages of the UK-India trade deal is that it removes many of the barriers that can make exporting feel complex and expensive.
The agreement includes a dedicated SME chapter, designed to help smaller businesses understand how to trade between the two markets and access clear, reliable information online.
Lower tariffs mean UK SMEs can sell products into India more competitively, while simplified customs procedures should reduce the time and administrative burden involved in moving goods across borders.
For service-based SMEs, the agreement creates new opportunities in sectors such as technology, financial services and professional services by improving market access and providing greater certainty when operating in India.
The trade deal gives smaller businesses more tools, clearer guidance and better access to one of the world’s fastest-growing major economies.
What SMEs need to do now the trade deal has started
With the trade deal now in force, SMEs should review whether their products or services could benefit from lower tariffs and easier access to the Indian market.
One of the most important steps for SMEs is to check if this business expansion will fit into their long-term tax plan.
Get in touch today to learn how the UK-India trade deal can positively impact your SME.
