The UK-India trade agreement comes into force on 15 July 2026, marking a significant milestone in the economic relationship between two of the world's largest economies. The deal is expected to increase bilateral trade by £25.5 billion annually in the long term and provide new opportunities for businesses looking to export, invest and grow in one of the world's fastest-growing markets. It has also been described by the Commons Business and Trade Committee as the UK's most economically significant bilateral free trade agreement since leaving the European Union. 

For Greater Manchester businesses, the agreement could create opportunities ranging from expanded export markets and reduced tariffs to stronger business partnerships and improved access for service providers operating internationally. 

Which Sectors Could Benefit? 

The agreement includes tariff reductions and improved market access across a broad range of industries, creating opportunities for both established exporters and businesses considering international growth for the first time. 

• Advanced Manufacturing: Greater Manchester's advanced manufacturing sector could benefit from reduced tariffs on products including aerospace components, automotive products, electrical equipment and specialised machinery. The agreement is expected to make UK-made products more competitive in the Indian market over time. 

• Green Technology: India's continued investment in renewable energy, clean technology and sustainable infrastructure presents opportunities for businesses operating in low-carbon solutions, environmental technologies and energy innovation. 

• Health and Life Sciences: Greater Manchester's internationally recognised health innovation ecosystem is well positioned to benefit from reduced barriers affecting medical devices and life sciences products. As healthcare demand continues to grow across India, UK expertise in health and innovation could become increasingly valuable. 

• Digital, Professional and Business Services: While much of the attention surrounding the agreement has focused on goods exports, the deal also includes provisions supporting services trade, including digital services, telecommunications, financial services and professional services. This presents opportunities for Greater Manchester's growing digital and knowledge-based economy. 

• Creative Industries: Enhanced intellectual property protections and greater market certainty could provide increased confidence for businesses operating in the creative, digital and media sectors. 

What Has Changed for Exporters? 

One of the most significant benefits of the agreement is the reduction of trade barriers. 

India has agreed to reduce or remove tariffs on 90% of tariff lines covering UK exports, with many products becoming tariff-free over time. The UK Government estimates the agreement could reduce tariffs on UK exports to India by up to £400 million a year when it comes into force, rising to £900 million annually after 10 years. 

Alongside tariff reductions, the agreement is designed to simplify customs procedures, improve transparency and make it easier for businesses to navigate the Indian market. UK firms will also gain access to opportunities within India's government procurement market, opening potential routes into public sector contracts and major infrastructure projects. 

For businesses importing products from India, lower UK tariffs on many goods could also help reduce costs and improve supply chain flexibility.

How Businesses Can Prepare 

While the agreement creates exciting opportunities, success in India still requires careful planning. Businesses considering India should: 

• Review whether tariff reductions could improve their competitiveness. 
• Review Rules of Origin requirements and ensure the necessary HMRC registrations and documentation are in place to benefit from preferential tariff rates. 
• Assess demand for their products or services within the market. 
• Explore potential distributor, partner or agent relationships. 
• Understand local regulations and routes to market. 
• Consider cultural and commercial differences when developing their export strategy. 
• Seek expert export advice before entering a new market. 

For many businesses, the agreement may provide an opportunity to revisit India as a potential export destination, particularly if previous barriers made the market difficult to access. 

Looking Ahead 

The UK-India trade agreement represents one of the most significant bilateral trade deals negotiated by the UK in recent years and is expected to create new opportunities for businesses across the country. With strong existing links between Greater Manchester and India, growing connectivity between the two regions and a proven track record of collaboration, local businesses are well placed to explore the opportunities this fast-growing market could offer. 

Whether you're already exporting internationally or taking your first steps into overseas markets, now could be the right time to consider how India fits into your growth plans.