UK-India FTA will likely boost UK’s share in India's trade back to 2009 levels

India-UK Free Trade Agreement will likely help revive trade between both the nations, which had declined post 2009.

“These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies,” said PM Narendra Modi on social media platform X.

UK had a 2.4 percent share in India’s trade (both exports and imports) in 2009, but this had declined to 1.8 percent in 2024.

While exports from India to the UK have grown at a healthy pace of 9.6 percent over the last six years (2019-2024), imports from the European nation had declined as a share of India’s total imports.

UK had a 1.5 percent share in India’s in India’s imports in 2009, which reduced to 1.4 percent in 2019 and further to 0.9 percent in 2024.

India’s exports to the UK were 3.2 percent of the country’s global exports compared with 3.7 percent in 2009.

In actual terms, India exported $14 billion worth of products to the UK in 2024 and imported goods worth $6.5 billion.

What do the two countries trade in?

While Textiles were the top export item from India in 2009, machinery and electronics now occupy the highest share of exports from Delhi to London.

The share of machinery and electronics rose from 10.2 percent in 2009 to 26.4 percent in 2024, while the share of textiles declined from 27.8 percent to 14 percent.

Chemicals have also become a major export category rising from 8.5 percent share to 11.8 percent in 2024.

Transport equipment is one category where India has lost its share, with its share in exports to the UK declining from double digits to 2.9 percent in 2024.

In terms of imports, trade shares haven’t changed much, except now UK metals, machinery and stone and glass still have a 61 percent share of India’s imports.

The deal between the two countries will reduce tariffs on key products such as whisky, cosmetics and medical devices from the UK, locking in reductions on 90% of tariff lines.