India-UK trade agreement boosts air cargo corridor

The India-UK Comprehensive Economic and Trade Agreement (CETA), which entered into force on July 15, 2026, is expected to boost the air cargo corridor between the two nations. The agreement provides zero-duty or reduced-duty access for nearly 99% of Indian exports to the UK, covering sectors such as pharmaceuticals, textiles, electronics, automotive components, and perishables.

Heathrow Airport has already seen significant activity, handling over 75,000 tonnes of cargo with India during the first half of 2026. To support this growth, IAG Cargo is expanding its capacity, adding a third daily London Heathrow-Delhi service starting September 19, which will bring its total London Heathrow-India capacity to 70 weekly services.

While the tariff reductions offer significant opportunities for high-value and time-sensitive trade, logistics experts note that exporters must still navigate rules-of-origin requirements, documentation, and transport capacity to fully realize these benefits.