India-UK FTA - Free Trade Agreement Certificate Online

The following documents are generally required by Indian exporters to claim preferential tariff benefits under the India-UK FTA:

• Proof of Origin
• Commercial Invoice
• Packing List
• Shipping Bill
• Bill of Lading / Air Waybill
• Import Export Code (IEC)
• Supporting Records

India-UK Free Trade Agreement (FTA) is a landmark trade deal proposed to boost economic ties between India and the United Kingdom. It aims to reduce tariffs on a variety of goods and services, ease market access, and promote investment and labour mobility. INDIA UK FTA deal covers sectors like textiles, automobiles, gems, engineering goods, and beverages. The India-UK FTA, signed on May 6, 2025, is subject to ratification by the parliaments of both countries before coming into force. Detailed tariff reduction schedules, rules of origin, and sector-specific provisions are being finalized. Exporters are advised to monitor official updates from the Ministry of Commerce (India) and the UK Department for Business and Trade.

With bilateral trade already around £47.9 billion, the free trade agreement is expected to significantly increase this volume in the coming years. It also addresses trade barriers and creates new growth opportunities for both countries.

India and the United Kingdom signed a historic Free Trade Agreement on May 6, 2025, after more than three years of negotiations. The UK-India Free Trade Agreement (FTA) is one of the most significant trade agreements signed since Brexit and is expected to have far-reaching implications for investment, trade, and employment in both countries. Here the major updates:

• Trade Volume: India and the UK had a total trade of £42.6 billion in goods and services in 2024.
• Tariff Reductions:
  • India will reduce tariffs on 90% of British goods, including automobiles, where import duties will be reduced from over 100% to 10%, and whisky, where tariffs will decrease from 150% to 40%.
  • The UK will lower tariffs on 99% of Indian exports, benefiting industries like leather, technical items, and textiles.
• Labor Mobility: Under the Double Contribution Convention (DCC), Indian professionals temporarily working in the UK will not be required to contribute to the UK's social security system for up to three years, generating estimated savings of INR 4,000 crore for Indian employers.
• Economic Impact: The Free Trade Agreement is expected to increase bilateral trade by £25.5 billion annually until 2040.

Although the FTA is being appreciated for its economic potential, but the concerns regarding how it will affect the Indian farmers and MSMEs are on the rise, highlighting the demand for policy protections.

While the India-UK Free Trade Agreement marks a significant milestone, certain sectors and provisions remain outside its current scope.

• Legal Services: The agreement between India and the UK does not cover legal services, which the UK law society has described as a missed opportunity. Legal services contribute £57.8 billion annually to the UK economy.
• Sensitive Agricultural Products: Tariffs on dairy products, apples and cheese remain unaffected from India-UK FTA to safeguard domestic agricultural industries in both countries.
• Carbon Border Adjustment Mechanism (CBAM): UK CBAM effective from 1 January 2027 remain exempted from agreement. The mechanism levies a carbon price on imports of iron, steel, aluminium, cement, and fertilizers.
• Bilateral Investment Treaty (BIT): A Bilateral Investment Treaty to protect investments and resolve investor-state disputes is under separate negotiation and does not form part of the FTA.

The signing of India-UK Free Trade Agreement on May 6, 2025, is a huge step in the growth of strategic and economic ties between the two countries. The FTA Deal provides India with duty-free entry to the UK market for key sectors like engineering products, textiles, jewelry and automobile components. It is expected to boost exports, generate new employment, and attract more foreign investment.

The agreement provides the UK with greater access to one of the world's fastest-growing economies. With its departure from the European Union, the UK is looking to expand its global commercial presence through this agreement. Lower import tariffs and simplified trade regulations will help sectors such as financial services, automobiles, and Scotch whiskey.

The India-UK agreement also promotes cooperation in technology, renewable energy and digital innovation. Both nations see this as a move towards long-term economic progress, climate action and a highly equitable global trade system.

There will be several benefits for both nations due to the India-UK Free Trade Agreement that will help boost the trades, investments and economic cooperation.

Benefits for India:

• Greater Export Access: Due to zero or lower tariffs, Indian industries like leather, engineering goods, textiles, auto components, and jewels will face more competition in the UK market.
• Employment Opportunities: Higher exports from India will create more jobs, especially in the manufacturing and services industries.
• Increase in Investment: The FTA is expected to attract foreign investment in clean energy, technology, and electronic trade.
• Improved Business Mobility: Simplified immigration and a three-year exemption from UK social security contributions for Indian professionals in health and IT sectors.

Opportunities for the UK:

• Access to Growing Markets: Easier access to India’s rapidly expanding market, especially in financial services, luxury products, and medicines.
• Reduced Tariffs on Key Exports: UK whisky and agricultural goods will be more affordable in India due to reduced tariffs.
• Investment in Green Energy and Technology: UK firms can benefit from India’s rising demand for sustainable energy and technology.
• Labour Mobility: Easier hiring of skilled Indian professionals in IT and healthcare to address UK labor shortages.
• Diversified Supply Chains: UK companies can reduce dependence on other markets by sourcing competitively priced goods from India.

Several Indian industrial sectors stand to benefit significantly from the India-UK Free Trade Agreement. Indian exporters seeking to avail preferential tariff benefits must obtain a valid RCMC Certificate from the relevant Export Promotion Council as a prerequisite for claiming a Proof of Origin under the agreement.

• Textiles and Apparel: With duty-free exports and improved market access to the UK, Indian textile and apparel industries are expected to benefit significantly. India is gaining a comparative advantage similar to that of Vietnam and Bangladesh, positioning the sector for exponential growth.
• Gems and Jewellery: Exports to the UK are projected to increase by $2.5 billion over two years. India's gem and jewellery sector aims to double bilateral trade to reach $7 billion, gaining substantial growth momentum.
• Automobile Sector: The Indian vehicle industry welcomes the agreement. Indian producers will target the UK mass-market segment, while the UK gains better access to India's expanding luxury car market. Reduced labor and manufacturing costs in India are expected to help maintain competitiveness in the UK.
• Engineering Goods and Auto Parts: These sectors are central to India's manufacturing growth. Exporters are optimistic about expanded UK market access for these products due to the FTA.

Although the India-UK Free Trade Agreement has several benefits, Indian stakeholders, particularly agricultural and MSME sector stakeholders, have raised some concerns

• Agricultural Sector: Indian farmers, particularly those growing tea, spices, and rubber, are concerned about the impact of increased competition from UK imports. The FTA may lead to lower prices and adversely affect small farmers, especially due to outdated pricing systems and land fragmentation.
• Micro, Small, and Medium Enterprises (MSMEs): MSMEs are worried about intensified competition, particularly in sectors like defense, public procurement, and healthcare. The FTA would give foreign companies greater access to Indian government contracts, threatening the market share of local and small-scale businesses.
• Carbon Border Adjustment Mechanism (CBAM): The UK's CBAM would impose a carbon price on imports, impacting India’s steel and aluminium exports. This would raise the cost of Indian goods in the UK, making them less competitive. India has proposed potential countermeasures to address this issue.

Check out other Free Trade Agreements India participates in to enhance trade opportunities and reduce customs duties.