Global Market Insight Webinar - India

India's Market Opening

India's economy enters 2026 as one of the world's fastest-growing major markets, with forecasts ranging from 6.2% to 7.2% GDP growth amid resilient domestic demand and policy reforms. The country is projected to surpass many peers, potentially becoming the fourth-largest economy by nominal terms.

The pivotal development is the UK-India Comprehensive Economic and Trade Agreement signed in July 2025. Set for provisional entry into force in April 2026 pending final ratification, it promises significant tariff reductions on UK exports—up to £400 million annually at the outset, potentially rising to £900 million over a decade. Key beneficiaries include automotive, whisky, food and drink, and manufacturing sectors, where Indian tariffs have historically been high.

Bilateral trade has already accelerated, reaching £47.4 billion in the four quarters to Q3 2025, an 11.7% increase, with UK exports up 13%. Services dominate UK exports to India, but goods face new opportunities as barriers ease. The deal includes mobility provisions, such as fast-track business visits and intra-corporate transfers, easing operations for UK firms establishing or expanding presence.

Non-obvious tensions include phased implementation: Indian exporters gain quicker access to the UK market in many areas, while some UK tariff benefits roll out gradually. UK businesses risk falling behind if they delay entry, especially as India concludes parallel deals with the EU, US, and others, intensifying competition. Regulatory navigation—compliance, logistics, and local partnerships—remains a hurdle, with inaction potentially meaning lost market share in a consumer base expanding through digital and infrastructure growth.

Stakes are tangible: missed deadlines could mean higher costs versus competitors, while early engagement positions firms for contracts in infrastructure, technology, and clean energy sectors driving India's expansion.