Stories

Tue, 14 Jul 2026

Tue, 14 Jul 2026 From Wimbledon towels to Scotch: What India-UK trade deal could mean for shoppers

The free trade agreement between the world's fifth and sixth largest economies has come into effect - can it deliver?

* The India-UK free trade agreement (FTA) has come into effect, removing or reducing tariffs on 99% of Indian exports to the UK and 90% of UK imports into India.
* The deal is expected to boost India's garment exports, which face stiff competition from Bangladesh and Pakistan, and could give Welspun Living, an Indian company that supplies towels to Wimbledon, a fillip in sales.
* According to Dipali Goenka, CEO of Welspun Living, the company's supply chain team is sitting in the John Lewis office, and she expects exports to the UK to grow in double digits.
* The reduction of customs duties on Scotch whisky from 150% to 75% with immediate effect could be a tipping point for British alcohol and spirits companies.
* Trade experts say that while the deal has potential, its impact may be incremental rather than transformational, and businesses will need training to comply with origin requirements and documentation.
* India's export of goods to the UK was $13.4bn in 2025-26, but more than half of these exports entered the country duty-free under the most favoured nation regime.
* The deal could also lead to an increase in bilateral trade between India and the UK by 15% every year.
* According to CareEdge Research, India is expected to double its market share from 6% in 2024 to 12% in the UK's ready-made garments (RMG) imports in the near to medium term.