India-UK Free Trade Agreement Set to Boost Exports and Beneficial for Karnataka
The India‑United Kingdom Free Trade Agreement came into force on 15 July 2026, opening the UK market to about 99 % of Indian exports. Industry leaders say the deal will create new opportunities across textiles, gems and jewellery, leather, information technology, professional services and other labour‑intensive sectors. The President of the Indian Merchants’ Chamber highlighted how the agreement will help micro, small and medium enterprises, improve value realisation for manufacturers and strengthen India’s global competitiveness, especially in diamond cutting and software engineering.
In the Indian state of Karnataka, officials expect the agreement to be a major driver of growth, citing the region’s strengths in agriculture, IT, aerospace, manufacturing, education and healthcare. A HealthTech accelerator programme hosted by the Manipal Academy of Higher Education brought together 25 startups, with six slated for a fully funded immersion visit to the UK. The first export consignment under the pact, featuring aluminium products and electronic goods, was also dispatched from Bengaluru.
The deal is portrayed as a historic step toward expanding trade, investment, education and connectivity between the two nations.