How The India-UK Trade Deal Could Be a Game Changer for Your Business?

‘We are nearly there’: UK and India agree on 90% of free trade agreement.

“After US President Donald Trump announced a 90-day tariff pause, it has stirred global markets into a mayhem. Indian External Affairs Minister S. Jaishankar noted that the Trump administration has been quick in responding to the bilateral trade agreement.

He revealed at the Global Technology Summit that New Delhi is geared up for a “very high” degree of urgency in trade deals with the US, European Union, and the UK. This development creates significant opportunities for UK-India trade deal for industrial goods procurement.”

– Collated from insights from the Financial Express (12th April, 2025)

Free Trade Agreements

A Free Trade Agreement is a formal arrangement between participating nations. They are aimed at dismantling trade obstacles like quotas, tariffs, and other export limitations on exchanged goods and services.

These are signed pacts that eventually stimulate economic exchange and capital investment by lowering barriers that might typically impede global business transactions.

– Source: WTO – Free Trade Agreements

How does the UK-India Trade Deal for Industrial Goods Procurement Benefit Everyone?

These advantages demonstrate how the UK-India trade deal benefits B2B sourcing operations:

1. Improved Market Access:

Businesses can export or import goods and services more easily. This can lead to higher revenues, cost-efficiency, and better margins in the long run.

2. Elimination or Reduction of Duties and Tariffs:

This leads to lower costs for the consumers, which can improve overall economic activity and therefore GDP growth.

3. Technology Transfer:

Leads to better productivity, economies of scale, and scope.

4. Domestic Industry growth:

With increased trade and higher production over the long term, domestic industries will flourish.

5. Foreign Direct Investments:

For example, when the US announced reciprocal tariffs some time ago, an interesting detail stood out – Canada and Mexico were not included. This exemption was due to the United States- Mexico – Canada Agreement (USMCA), a trade pact that prevented the imposition of heavy tariffs among the three countries.

It served as a useful reminder of the role Free Trade Agreements play in offering predictability and protection in the global trade arena. Now that the US and China have reached a partial agreement and tariff tensions have eased, it’s a good time to look ahead.

What does the UK Import from India?

Before we get into the details of the UK-India trade deal, let’s take a closer look at what the UK imports from India – and which sectors might offer importers a strategic edge and better margins.

Product Category	United Kingdom’s imports from India (in Million USD)
	Value in 2020	Value in 2021	Value in 2022	Value in 2023	Value in 2024	CAGR
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television	440.157	967.343	1312.935	2310.759	2910.748	45.91%
Mineral fuels, mineral oils & products of their distillation; bituminous substances; mineral	337.963	465.438	2404.794	2239.838	1937.379	41.80%
Nuclear reactors, boilers, machinery & mechanical appliances; parts thereof	617.467	1034.314	1162.455	1182.781	1128.86	12.82%
Pharmaceutical products	558.498	693.203	690.771	917.41	949.336	11.19%
Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad	408.405	1210.153	762.269	749.613	835.839	15.40%
Articles of apparel and clothing accessories, not knitted or crocheted	447.708	480.24	708.7	661.126	640.053	7.41%
Articles of apparel and clothing accessories, knitted or crocheted	520.272	612.45	708.195	583.618	556.951	1.37%
Organic chemicals	368.473	390.967	530.741	421.808	554.965	8.54%
Iron and steel	72.852	425.604	384.29	304.776	535.216	49.01%

In simple terms, India majorly exports Industrial goods. The last column in this table represents the CAGR (Compound Annual Growth Rate), which reflects strong and consistent growth over the last five years.

UK-India Trade Deal for Industrial Goods Procurement

Engineered products, machinery and equipment, articles of Iron and steel. Industrial goods sourcing is one of rivexa’s strongest points, powered by a network of 500+ verified suppliers that cater to:

• Drawing-Based – CNC Machined Parts, custom parts, replacement parts, drawing-based OEM aftermarket parts.
• annual MROs, eg, bearings, belts, filters, valves, rollers, switches, connectors, etc.
• Diverse Opex and Capex Procurements.
• If you’re a buyer located in the UK, you can simplify your supply of industrial goods and components by sourcing them from India via rivexa.

Apparel and Home Textiles

Knitted-wear, clothing, and apparel are also promising and steadily growing categories. Currently, India accounts for just 7.61% of the UK’s imports in this segment, while the UK contributes only 6.07% to India’s apparel exports.

The UK-India trade deal benefits B2B sourcing in fashion and home textiles through reduced tariffs. With a Free Trade Agreement in place, there is a greater chance that apparel, clothing, and knitted-wear is a category that could see significant growth, driven by government support, increased foreign direct investment, technology transfer, and product innovation.

rivexa works with verified suppliers in the Fashion and Home Textiles category, offering sound manufacturing capabilities to accurately bring your designs to life.

B2B Sourcing Trends Post UK-India Trade Deal: What Comes Next?

If you’re considering sourcing from India, your primary challenges might include:

• Identifying the right suppliers
• Ensuring they meet your specific sourcing needs

But these shouldn’t be obstacles that prevent you from benefiting from the upcoming India-UK Free Trade Agreement.

That’s why we’re here – to make the supplier qualification, supplier discovery, execution, follow-up, and coordination easier for you. We even have a B2B export marketplace that digitally enables buyers and suppliers during the sourcing process.

Digital Sourcing Co-Pilot

Our marketplace is designed to help you capitalize on how the UK-India trade deal benefits B2B sourcing. We now have features that align with B2B sourcing trends post UK-India trade deal, enable transparent progress tracking, and seamless communication with the supplier of your choice. You can even preview supplier credentials, capabilities, and ratings before making your selection.

Got a drawing that needs custom manufacturing to bring it to life? Then upload it on our marketplace, fill in details of your requirements, and get quotes from multiple qualified suppliers – it’s that simple!

And if you don’t hear back from our suppliers, our category experts will forward your sourcing requirements to them. We’re the type of sourcing company that believes in balancing the best in technology and expertise. We have on-ground teams that follow up on all active manufacturing processes. Understanding B2B sourcing trends post UK-India trade deal is crucial for strategic procurement decisions.

Sourcing Simplified with rivexa

Reach out to a rivexa expert to discuss how the UK-India trade deal for industrial goods procurement can benefit your business. We’d be happy to talk sourcing requirements and help you gain a clear understanding of Indian manufacturing expertise. Explore how the UK-India trade deal benefits B2B sourcing and you, supported by the unique skills of Indian suppliers.