Comprehensive Economic and Trade Agreement with India

Monday 1st September 2025 Written Statements

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

On 24 July 2025, the Government signed the UK-India trade deal. This deal will unlock economic growth in every corner of the UK, put money back into working people’s pockets, and delivers on the plan for change. It is expected to increase bilateral trade by £25.5 billion, increase UK GDP by £4.8 billion, and boost wages by £2.2 billion every year. We are showing the world that we stand for free, fair, and open trade. In an increasingly unstable and volatile world, this deal provides businesses with confidence as they grow and expand.

This agreement drops the average Indian tariff on UK products from 15% to 3%, with tariff duties falling by around £400 million from entry into force, rising to £900 million after staging. This is alongside securing unprecedented preferential access to India’s federal procurement market, locking in guaranteed market access for UK service suppliers, and making trade quicker, cheaper, and easier through improved customs and digital processes.

This agreement will unlock new opportunities for businesses in every corner of the UK, including an expected £190 million boost for the west midlands and Scotland and £210 million for the north-west of England. The deal also aligns with our industrial strategy, supporting the UK’s high growth sectors.

And as India grows, so will the opportunities for the UK, giving businesses a competitive edge with the fastest-growing economy in the G20.

The UK Government have published a Command Paper titled “Informational Copy of the Comprehensive Economic and Trade Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of India and associated documents, including the Impact Assessment and draft Explanatory Memorandum”. Copies of these have been placed in the Libraries of both Houses. Further information on the trade agreement has also been published on gov.uk.

The Government have commenced the necessary pre-ratification steps. On 24 July, the UK Government formally commissioned the Trade and Agriculture Commission as well as the Food Standards Agency and Food Standards Scotland to provide independent advice. Informed by this advice, the Government will then lay its own report under section 42 of the Agriculture Act 2020. After the TAC and section 42 reports have been laid before Parliament, the Government will begin the processes under the Constitutional Reform and Governance Act 2010 in order to ratify the agreement. All needed legislation to implement the agreement will follow standard procedures. In parallel, negotiations for the double contribution convention will be finalised, which will then also be subject to the CRaG process.

I look forward to working closely with the business and trade and international agreements committees on the scrutiny of this agreement and updating the House further in due course.

[HCWS892]