We have our LogX Networks member, Andrew Targett from Fortitude Global Logistics providing his expert opinion for the current India-UK Trade Deal. Please read below to understand better the current situation, and how the companies in these markets can get the benefit and growth with this deal.
- With the new deal eliminating or reducing tariffs, which Indian goods or sectors do you expect to gain the most traction in the UK market?
1. Textiles & Apparel
· The elimination of UK import duties (previously 8–12%) levels the playing field against competitors like Bangladesh and Vietnam, Indian Textile Export hubs such as Tirupur (knitwear), Surat (sarees), and Ludhiana (woollens) will see a large growth and limitless potential for future development
· Estimates suggest UK-bound textile exports could rise by 30–45% (around $500M–$800M) by 2030.5
2. Leather & Footwear
· With duties (around 8%) removed, Indian leather and footwear has gained a competitive edge against areas such as Vietnam, China, Cambodia & Thailand. Due to the new agreements centres leather producing & footwear manufacturing areas such as Kanpur, Agra, and Chennai could see notable export expansion to UK
· Tamil Nadu alone anticipates a surge in leather and footwear exports, valued at nearly 40% of India’s total output
3. Gems & Jewellery
· Tariffs on precious and semi-precious jewellery are fully abolished
· Rajasthan’s jewellery exports to the UK are expected to receive a major boost, potentially increasing by ₹3,000–5,000 crore
· This provides MSMEs in places like Surat with significant opportunities to scale.
4. Auto Components & Engineering Goods
· Tariffs slashed from over 100% to just 10%, though subject to quotas.
· Especially promising for Tamil Nadu, where auto components are a major export category. Tamil Nadu manufacturers stand to benefit in areas like electric mobility and precision engineering
· The automotive supply chain—including firms like Tata-JLR and TVS can now better integrate already strong and successful UK–India operations
5. Agriculture & Food Products
· Over 95% of agricultural and processed items, including spices, seafood, pulses, mango pulp, pickles, and RTE meals will now face zero tariffs
· India gains premium access to the UK’s $5.4bn marine import market, especially valuable for shrimp, tuna, and fishmeal exports.
· A major boost for Indian farmers and food processors targeting niche, high-value segments.
6. Chemicals & Plastics
· Preferential tariffs for agrochemicals, iodine, and specialty chemicals are expected.
· Export volumes could potentially double to $1 billion by 2029–30.
7. MSME Opportunities
· With 99% of tariff lines eliminated, MSMEs across textiles, leather, engineering, and food sectors are positioned to sharply reduce costs and improve competitiveness.
· The deal is expected to stimulate formalisation, digitalisation, and job creation potentially exceeding 100,000 roles by 2030.
Regional Highlights: State-Specific Impacts
- Tamil Nadu
Auto components, textiles, leather, and footwear are expected to surge. Textile exports from hubs like Tirupur are projected to more than double. Auto parts and EV engineering stand out as high-value growth areas.
- Rajasthan
Gems, jewellery, and textiles will benefit from zero duties. Rajasthan’s jewellery exports could increase by ₹3,000–5,000 crore, while textile exports become more competitive.20
Summary Table: Sector / Region
Textiles & Apparel — Duty-free access → competitive pricing; strong export growth
Leather & Footwear — Tariff elimination → major uplifts for manufacturing hubs
Gems & Jewellery — Zero duties → high-value export expansion
Auto Components & Engineering — Huge tariff cuts → opportunity for integration and exports
Agriculture & Food Products — Vast duty reductions → widened access to UK premium markets
Chemicals & Plastics — Preferential terms → potential doubling of exports
MSMEs (across sectors) — Lower costs, formalisation, digitisation, job creation
This agreement is a powerful lever for India’s export-oriented sectors, especially textiles, leather, jewellery, auto components, and agriculture, offering cost-effective access and significant growth potential in the UK market.
2. How might this agreement influence your sourcing, import, or export strategies with India?
The agreement will not influence our sourcing as a business but as a nation it has the potential to have a large impact on how we trade with overseas partners, to give some feedback and my thoughts please see below:
The new India–UK trade agreement, with its broad tariff reductions and streamlined trade processes, is poised to reshape UK sourcing, import, and export strategies with India in several significant ways:
1. Shift in UK Sourcing Strategies
More Sourcing from India, Less from China & EU
· Tariff elimination makes Indian goods more cost-competitive compared to those from China or other non-FTA countries.
· UK buyers in sectors like textiles, apparel, pharmaceuticals, auto components, leather, and processed foods may diversify or shift sourcing to India to reduce supply chain risks and costs.
Example:
· UK fashion retailers such as Marks & Spencer or ASOS may scale up procurement from Indian garment hubs (e.g., Tirupur or Jaipur) due to duty-free access.
Supply Chain Rebalancing
· Expect growing nearshoring or friendshoring interest, with India becoming a preferred low-cost, reliable, and rules-compliant partner over Southeast Asian or Chinese suppliers.
2. Import Strategy: UK Gains from Lower Costs & Expanded Product Access
Cheaper Consumer Goods
· UK importers will gain access to lower-cost Indian textiles, auto parts, seafood, and spices, potentially reducing costs in construction, food, automotive, and retail sectors.
High-Value Sectors Benefit
· For sectors like pharmaceuticals, chemicals, and electronics, the deal opens access to raw materials, generics, and precision engineering goods from India at better margins.
SME Focus
· UK SMEs can now import from India with simplified customs rules, e-certifications, and digital documentation, encouraging them to trade with Indian suppliers previously out of reach due to complexity or cost.
3. Export Strategy: UK Firms Target India’s Expanding Middle Class
Auto, Scotch Whisky, and Financial Services
· UK exporters of premium automobiles (Jaguar, Land Rover), Scotch whisky, cheese, financial services, and education will benefit from reduced Indian tariffs and non-tariff barriers.
· India’s growing upper-middle class presents a large and increasingly brand-conscious consumer base.
Education & Professional Services
· Eased visa/work recognition norms will let UK universities, EdTechs, and consultancies expand operations and services in India.
Industrial Goods & Green Tech
· UK manufacturers of green technology (solar, wind, EV components), defence, and med-tech may see growing export opportunities due to mutual recognition of standards and a more open procurement environment.
Strategic Shifts for UK Businesses: Area
Sourcing — Increased sourcing from India due to lower costs and FTA terms
Retail imports — Broader Indian product range; lower prices in key sectors
Export targets — More focus on India’s rising demand in luxury and tech segments
Partnerships — More UK–India JVs and tech transfers (e.g., auto, clean energy)
Compliance — Need to adapt to India’s evolving regulatory and IP environment
Key Impacts on UK Trade Strategy
· Short Term: Cheaper imports from India, especially in consumer and intermediate goods. Sourcing diversification from China.
· Medium Term: Increase in UK exports to India in luxury, education, and green tech.
· Long Term: Deepened UK–India supply chain integration, joint R&D, and manufacturing.
3. Do you foresee greater demand for specialized logistics solutions between the UK and India?
Yes, greater demand for specialized logistics solutions between the UK and India is highly likely as a direct outcome of the new trade agreement. The reasons are both structural (tariff cuts, simplified procedures) and strategic (deeper supply chain integration, sectoral shifts).
Why Specialized Logistics Will See Increased Demand
1. Higher Volume of Trade
· With tariffs slashed or removed on 99% of goods, bilateral trade is expected to grow by $15–20 billion over the next 5–7 years.
· This increase will demand more capacity, efficiency, and visibility in freight and customs handling, especially in time-sensitive or regulated sectors.
2. Growth in High-Sensitivity Goods
Sectors gaining from the deal often require special handling, storage, or compliance:
Sector
Pharmaceuticals — Cold chain, temperature monitoring
Seafood & Food Products — Refrigerated transport, fast customs
Textiles & Apparel — Just-in-time delivery, consolidation hubs
Auto Components — Precision handling, multimodal freight
Jewellery — High-security cargo, insured transport
3. E-commerce & SME Integration
· Lower trade barriers will bring more Indian MSMEs into the UK market, many of whom need plug-and-play export logistics platforms with customs brokerage, packaging, labelling, and last-mile delivery.
· UK e-commerce and B2B platforms (like Amazon, eBay, Faire) will need cross-border fulfilment infrastructure tailored for Indian exporters.
4. Regulatory & Customs Changes
· Faster trade means smarter compliance: real-time customs clearance, electronic documentation, and traceability.
· UK and Indian logistics providers will need digital trade corridors, enabled by API integration with customs authorities and data-driven risk management.
Types of Specialized Logistics Solutions That Will Rise
Solution Type
Cold Chain Logistics — For pharma, food, seafood (especially shrimp and tuna)
High-Security Cargo — For jewellery, electronics, and high-value components
Just-in-Time Logistics — Apparel, auto parts, engineering tools
Cross-Border E-commerce Hubs — Fulfilment centres in both India and the UK
Multimodal & Express Freight — Faster movement via air-sea-road combinations
Customs & Trade Compliance Tools — Automation, e-documents, smart duty calculations
Regional & Infrastructure Implications
· In India: Ports like Mumbai, Chennai, and Vizag may see surges in UK-bound cargo. Inland logistics (rail and road) to these ports will need scaling.
· In the UK: Ports like Felixstowe, Southampton, and Heathrow (for air cargo) will need India-optimized processing lanes or services.
Opportunities for Logistics Providers
· UK-based logistics players can build or partner in India to offer integrated UK–India solutions.
· Indian logistics startups can tap UK demand by creating export-oriented SME bundles.
· Scope for blockchain-based traceability, especially in sectors like pharma, seafood, and jewellery.
The India-UK trade deal isn’t just about tariff cuts, it’s about building a frictionless trade corridor, which requires logistics to evolve from transport to tech-driven, sector-specific enablers. So yes, demand for specialized logistics will grow—sharply and sustainably.
4. What kind of opportunities does this create for UK companies wanting to expand in India?
The India–UK trade deal opens substantial and multifaceted opportunities for UK companies across industries—beyond just exports. With reduced tariffs, regulatory easing, and greater access to India’s fast-growing market, UK firms are now positioned to invest, partner, and scale operations in India like never before.
Top Opportunities for UK Companies in India
1. Premium Consumer Goods & Beverages
· Tariff reductions on high-demand UK goods like Scotch whisky, cheese, and luxury cars make these more price-accessible in India.
· India has a rapidly growing middle and upper-middle class keen on aspirational, foreign-branded goods.
Opportunities:
· Expand distribution networks for whisky, craft spirits, and specialty foods.
· Partner with Indian retail chains or e-commerce platforms.
· Local bottling or co-manufacturing to further reduce costs.
2. Education & EdTech
· India is a global hub of students looking for international qualifications.
· The deal includes eased visa norms, mutual recognition of qualifications, and support for joint degrees.
Opportunities:
· UK universities can establish joint campuses or twinning programs in India.
· EdTech platforms can tap India’s vast digital learning market.
· Corporate upskilling and executive education partnerships with Indian enterprises.
3. Financial & Professional Services
· Regulatory easing and digital infrastructure in India are opening doors for:
o Legal, accounting, and consulting firms
o Insurance, fintech, and investment firms
Opportunities:
· Set up Indian arms or JV models to offer compliance, auditing, or strategy services.
· Fintech and regtech firms can serve India’s growing SME and banking sectors.
· Serve India’s growing HNI base with wealth management and tax advisory services.
4. Green Technology & Clean Energy
· India is investing heavily in solar, EVs, hydrogen, and wind energy.
· UK has deep expertise in sustainability and climate tech.
Opportunities:
· Collaborate with Indian energy firms on technology transfer, R&D, or turnkey project execution.
· Supply smart grid tech, EV components, storage systems, or circular economy solutions.
· Access large infrastructure tenders under India’s green energy missions.
5. Healthcare, Pharma & MedTech
· India’s healthcare market is expected to reach $372 billion by 2027.
· Growing demand for medical devices, diagnostics, Health tech, and training services.
Opportunities:
· MedTech and health analytics companies can provide AI diagnostics, hospital tech, and mobile health platforms.
· Set up JV manufacturing or training centres for surgical tools and diagnostics.
6. IT & Digital Services
· India's digital economy is exploding, with massive investment in cloud, cybersecurity, and AI.
Opportunities:
· UK digital firms can partner with Indian IT firms for hybrid delivery models.
· Provide niche services in cybersecurity, fintech infrastructure, or SaaS.
· Access to India's cost-effective tech talent for building global delivery centres.
7. Infrastructure & Engineering
· India is building roads, railways, smart cities, and ports on a massive scale.
Opportunities:
· UK infrastructure firms (engineering design, architecture, ESG audit) can bid on government or PPP projects.
· UK-based green architecture, modular construction, and materials firms will find demand rising.
Strategic Modes of Entry
Entry Mode
Joint Ventures — When local knowledge or regulatory approvals are needed
Wholly Owned Subsidiaries — For long-term investment in stable sectors
Franchise/Distributor Networks — Good for consumer goods, retail, education
Licensing & Tech Transfer — Great fit for healthcare, green tech, industrials
Digital-First Models — For fintech, EdTech, or SaaS companies
Cities & Hubs to Target in India
Bengaluru — Tech, fintech, aerospace
Mumbai — Finance, media, logistics, luxury retail
Delhi NCR — Policy access, education, MedTech
Hyderabad — Pharma, life sciences, enterprise SaaS
Chennai — Auto, EVs, engineering, marine exports
Pune — Manufacturing, clean energy
The deal gives UK companies a first-mover advantage in one of the fastest-growing major economies. It lowers both the cost of entry and the risk of expansion, especially in areas where the UK brings deep expertise—premium goods, education, services, sustainability, and tech.
5. How important is having trusted local partners in India to maximize the benefits of this trade deal?
Having trusted local partners in India is critical—arguably one of the most important success factors—for UK companies aiming to maximize the benefits of the India–UK trade deal.
Why Local Partnerships Matter So Much
1. Navigating Complex Regulatory & Bureaucratic Landscapes
· India has layered regulations across federal, state, and local levels.
· Trusted partners can:
o Speed up approvals and licensing
o Handle local tax, labour, and compliance issues
o Help interpret and align with evolving regulatory standards
Without local support, UK firms may waste time and capital adjusting to unexpected legal hurdles.
2. Understanding Cultural & Market Nuances
· Business in India is highly relationship-driven, with regional differences in:
o Language
o Negotiation styles
o Customer expectations
· Local partners help you adapt branding, pricing, and messaging to specific Indian audiences—critical for consumer-facing sectors like food, fashion, or tech.
Misreading market signals or over-relying on Western models can hurt brand traction.
3. Access to Distribution & Infrastructure
· India’s infrastructure—especially logistics and retail—is fragmented and region-specific.
· Partners bring:
o Established supply chains and warehousing
o Access to retailers, marketplaces, and logistics providers
o Insight into customs procedures and last-mile delivery
This is vital for sectors like apparel, electronics, and packaged foods.
4. Faster Market Entry & Risk Sharing
· Joint ventures, strategic alliances, or local franchises enable:
o Faster route-to-market
o Shared investment costs
o Shared regulatory risk
o Easier recruitment and retention of local talent
Especially important for services like education, healthcare, and B2B tech.
5. Qualifying for Public Procurement or Government Projects
· Many Indian tenders favour or require local presence or partnerships.
· Working with Indian firms helps qualify for "Make in India" or infrastructure projects that could otherwise be off-limits.
A must-have for infrastructure, energy, and defence sectors.
Partnership Examples by Sector
Sector
Education & EdTech — Universities, training institutes, EdTech startups
Food & Beverage — Importers, retail chains, packaging specialists
Clean Tech — Energy firms, EPC contractors, state agencies
Pharma & Health — Hospital networks, distributors, CROs
Digital Services — IT companies, telecoms, system integrators
Fashion & Retail — Indian fashion retailers, e-commerce enablers
What Happens Without a Trusted Partner?
Without Local Partner
Poor compliance — Missed approvals, tax fines, legal issues
Cultural misalignment — Weak consumer engagement, failed campaigns
Slow rollout — Delays in operations, higher burn rate
Missed local incentives — No access to subsidies, tenders, or benefits
Higher operating costs — Overpaying for logistics, labour, or services
What to Look for in a Trusted Indian Partner
· Established local presence and market reach
· Proven track record with international partners
· Strong reputation with regulators and customers
· Transparent financials and governance
· Complementary strengths (not just a distributor, but a strategic ally)
To truly unlock the value of the India-UK trade deal, UK companies must go beyond just shipping goods, they need on-the-ground intelligence, operational agility, and cultural fluency. A trusted local partner is the bridge to all three.
