India UK Trade
The UK was India's 5th-largest export destination in FY26, with exports reaching US$ 13.44 billion across 6,363 commodities.
Introduction
India-UK relations have entered a new phase with the operationalisation of the Comprehensive Economic and Trade Agreement (CETA) on July 15, 2026. The agreement provides zero-duty access to nearly 99% of India’s exports, covering almost 100% of the trade value, significantly strengthening India UK trade and enhancing export competitiveness. Alongside expanding cooperation in services, investment, innovation, and professional mobility, CETA is reinforcing the India UK economic partnership and creating new opportunities for businesses and MSMEs.
India-UK Trade
- In FY26, the bilateral trade between India and the UK stood at US$ 25.12 billion.
- In FY26, India had a trade surplus of US$ 1.76 billion with UK.
- UK ranks 5th as an export destination and 18th as an import partner for India.
- UK is the 6th largest investor in India with cumulative foreign direct investment (FDI) inflows of US$ 36.89 billion from April 2000-March 2026.
Major exports from India to the UK
- India’s export to the UK stood at US$ 13.44 billion in FY26.
- India exported 6,363 commodities to the UK in FY26.
- Major items exported by India to the United Kingdom included engineering goods (US$ 4.74 billion), followed by readymade garments of all textiles (US$ 1.50 billion), electronic goods (US$ 995.69 million), drugs and pharmaceuticals (US$ 902.95 million), gems and jewellery (US$ 702.04 million), petroleum products (US$ 640.86 million), organic and inorganic chemicals (US$ 500.44 million), and leather and leather manufactures (US$ 379.35 million) during FY26.
Major imports by India from the UK
- Imports from UK to India stood at US$ 11.68 in FY26.
- India imported 4,743 commodities from the UK in FY26.
- Major items imported by India from the United Kingdom included silver (US$ 5.20 billion), followed by machinery, electrical and non-electrical (US$ 1.44 billion), non-ferrous metals (US$ 787.12 million), electronic goods (US$ 750.68 million), transport equipment (US$ 576.33 million), iron and steel (US$ 448.01 million), wood and wood products (US$ 299.70 million), professional instruments and optical goods (US$ 265.27 million), and organic and inorganic chemicals (US$ 202.14 million) during FY26.
Recent Trends and Developments
- India-UK CETA came into effect on July 15, 2026, granting zero-duty access to nearly 99% of India's exports, covering almost 100% of trade value.
- On June 4, 2026, India and the UK launched the India–UK Critical Minerals Global Supply Chain Observatory (GSCO) to strengthen cooperation on critical minerals and build resilient global supply chains.
- On January 21, 2026, UK launched a new International Education Strategy that aims to grow British education exports to US$ 54.8 billion (£40 billion) annually by 2030, and has identified India as a key partner and priority country for expanding global education exports, international campus partnerships and broader education-sector cooperation.
- On January 2, 2026, the India–UK Comprehensive Economic and Trade Agreement (CETA) is expected to come into force in the first half of 2026, with the British envoy noting that the deal will provide Indian exporters improved duty-free market access and significantly boost trade between the two nations.
- On October 9, 2025, Prime Minister Mr. Narendra Modi and UK Prime Minister Mr. Keir Starmer met in Mumbai during Global Fintech Fest 2025, expressed satisfaction at the upward trajectory of the Comprehensive Strategic Partnership, and reaffirmed commitment to strengthening economic collaboration, trade implementation and cooperation in technology, defence, education and regional stability.
- On July 24, 2025, India and UK signed the Comprehensive Economic and Trade Agreement (CETA), a landmark free trade pact designed to deepen economic integration, eliminate tariffs on nearly 99% of India’s exports to the UK, and create expanded market access for goods and services, marking a major milestone in bilateral economic ties.
- On July 24, 2025, India and the UK signed the Comprehensive Economic and Trade Agreement (CETA), granting duty-free access to 99% of India’s exports and targeting a doubling of bilateral trade in goods and services to US 120 billion by 2030.
- India and the UK launched Vision 2035 in London on July 24, 2025, to deepen cooperation across trade, technology, defence, climate, and education, reinforcing their Comprehensive Strategic Partnership.
- The University of Southampton will open India’s first UK branch campus in Gurugram in August 2025, followed by the University of York’s Mumbai campus in 2026-27, offering programmes in technology, business, economics, and creative industries with a strong research focus.
- On March 20, 2025, a delegation from the UK Skills and Chartered Bodies Mission visited Odisha to explore partnerships in vocational education and training. Key discussions with the State’s Skill Development and Technical Education department focused on introducing UK-style apprenticeships and boosting industry-led skilling in sectors such as advanced manufacturing, renewable energy, digital skills, and sustainable infrastructure.
- On February 10, 2025, during the Fourth India-UK Energy Dialogue in New Delhi, India and the United Kingdom launched Phase 2 of the ASPIRE programme to support round-the-clock power supply and accelerate industrial decarbonisation. The two countries also established a UK-India Offshore Wind Taskforce to advance offshore wind ecosystem development, supply chains, and financing models.
- On December 3, 2024, British International Investment committed US$ 33.5 million to India’s Electric Vehicle (EV) sector, funding Everest Fleet, TI Clean Mobility, and Vecmocon, taking its total EV investments in India to US$ 328 million.
- On November 28, 2024, India and the UK signed a pact in Portsmouth to co-develop electric propulsion systems for Indian warships, advancing maritime technology and supporting the 2030 Roadmap.
- The UK is boosting defence ties with India ahead of its 2025 Carrier Strike Group deployment, with August 2024 talks covering leadership, cyber, AI, and strategic cooperation under the 2030 India-UK Roadmap.
India-UK Comprehensive Economic and Trade Agreement (CETA)
On July 15, 2026, India and the UK operationalised the Comprehensive Economic and Trade Agreement (CETA), providing zero-duty market access to nearly 99% of India's exports, covering almost 100% of the trade value, to boost bilateral trade and export competitiveness.
India–UK merchandise trade reached US$ 25.12 billion in FY26, while bilateral services trade stood at US$ 35.44 billion in 2024, highlighting the growing scale of the India–UK economic partnership under CETA.
The India–UK CETA is expected to significantly boost sectoral exports, with engineering exports projected to exceed US$ 7.5 billion by 2029-30, agricultural exports expected to rise by over 50% in the next three years, and gems and jewellery exports projected to double within 2–3 years.
The agreement strengthens investment ties, with the UK contributing cumulative FDI of US$ 35 billion to India and Indian outward investment in the UK reaching US$ 19 billion. As of July 2025, 971 Indian companies operated in the UK, employing over 100,000 people.
The India–UK CETA enhances professional mobility through the Double Contribution Convention (DCC), benefiting over 75,000 Indian professionals and around 900 companies, while generating annual savings exceeding US$ 600 million by eliminating dual social security contributions.
The agreement is expected to unlock a US$ 23 billion trade corridor by eliminating tariffs on a broad basket of products and opening access to public procurement markets, thereby boosting export volumes and laying the foundation for deeper collaboration in goods, services, digital trade and intellectual property. Industry stakeholders have highlighted the strategic significance of CETA for Indian micro, small and medium enterprises (MSMEs), with tariff concessions projected to reduce costs and enhance competitiveness in key export sectors such as textiles and leather, while also expanding opportunities in services and digital commerce.
Indian exporters and MSMEs have been encouraged to leverage CETA to tap new markets and scale exports, as improved market access and tariff elimination are expected to drive competitiveness and employment generation. Collectively, these developments position the India–UK CETA as a transformative framework that strengthens economic integration, supports MSME growth and sets the stage for long-term, sustainable expansion of bilateral trade and investment.
Conclusion
India-UK relations have entered a new phase with the operationalisation of the Comprehensive Economic and Trade Agreement (CETA), reinforcing both countries' commitment to expanding trade, investment, and strategic cooperation. By improving market access, strengthening services, innovation, and professional mobility, the agreement is expected to accelerate India UK trade and deepen the India UK economic partnership.
Contacts
- High Commission of India, London, UK
Telephone Number: 00-44(0)20-7836147
Email: hcoffice.london@mea.gov.in
Address: High Commission of India, India House, Aldwych, London
Mr. Kumaran Periasamy (High Commissioner)
Mr. Kartik Pande (Deputy High Commissioner) - British Deputy High Commission in India
Address: Shantipath, Chanakyapuri, New Delhi 110021, India
Contact Forum: https://www.contact.service.csd.fcdo.gov.uk/home
Ms. Christina Scott CMG (Minister and British Deputy High Commissioner to India)
Ms. Lindy Cameron (British High Commissioner to the Republic of India) - The Confederation of Indian Industry (CII), UK
Ms. Shehla Hasan, Director and Head-UK;
Email: shehla.hasan@cii.in
FAQs
India exports to the UK are led by engineering goods (US$ 4.74 billion), followed by readymade garments, electronic goods, pharmaceuticals, gems and jewellery, petroleum products, chemicals, and leather products. These high-value sectors form the backbone of India UK trade and are expected to benefit further under CETA.
India UK trade has strengthened steadily, with bilateral trade between India and the UK reaching US$ 25.12 billion in FY26. The operationalisation of the Comprehensive Economic and Trade Agreement (CETA) marks a new phase in India UK trade relations, with both countries targeting US$ 120 billion in bilateral trade by 2030.
The India UK economic partnership is being driven by engineering, textiles, pharmaceuticals, gems and jewellery, financial services, clean energy, education, digital technologies, and advanced manufacturing. CETA is expected to accelerate growth across both goods and services by improving market access and reducing trade barriers.
The UK offers significant trade opportunities between India and the UK, particularly in sectors where India's market share remains relatively low despite strong import demand. Duty-free access under CETA is expected to improve the competitiveness of Indian exporters across agriculture, engineering, food processing, marine products, textiles, and chemicals.
Strong UK imports from India include engineering goods, garments, pharmaceuticals, electronic goods, gems and jewellery, leather products, and petroleum products. CETA is expected to further increase demand by eliminating tariffs on nearly 99% of India's exports to the UK.
Strong India UK trade relations are supported by CETA, Vision 2035, investment partnerships, technology collaboration, and professional mobility. The agreement also improves access to government procurement, digital trade, and services, creating new opportunities for businesses, professionals, and MSMEs.
Future trade opportunities between India and the UK are expected across engineering goods, software and IT services, electronics, pharmaceuticals, agriculture, food processing, renewable energy, fintech, and professional services. These sectors are expected to gain from tariff elimination, services liberalisation, and stronger investment cooperation under CETA.
The growth of India UK trade is being driven by CETA, zero-duty access on most Indian exports, stronger investment flows, resilient supply chains, technology partnerships, digital trade, and deeper cooperation in education, clean energy, and innovation under the broader India UK economic partnership.
Indian businesses can expand India exports to the UK by leveraging CETA's tariff benefits, complying with UK quality standards, targeting high-growth sectors, and participating in the UK's public procurement market. MSMEs, digital businesses, and services firms are also expected to benefit from simplified trade procedures and improved market access.
Emerging export opportunities include processed food, value-added agriculture, electronics, software and IT services, medical devices, clean energy technologies, plastics, sports goods, toys, and engineering products. CETA is expected to improve India's competitiveness across these sectors while creating long-term trade opportunities between India and the UK.
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