Chartered Accountants◆Practising since 2016

UK to India · Trade and sectors

Trade agreements and sector rules for UK investors

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

The India–UK Comprehensive Economic and Trade Agreement has been in force since 15 July 2026. Foreign investment from the United Kingdom is on the automatic route in most sectors. UK investors are most active in financial and professional services, technology and capability centres, automotive and engineering.

What is specific to UK companies

The India–UK trade agreement has been in force since 15 July 2026, cutting tariffs and easing mobility, but it does not change FDI caps.

Sectors

  • Financial and professional services
  • Technology and capability centres
  • Automotive and engineering
  • Consumer brands

A trade agreement does not change FDI caps, FEMA pricing or RBI reporting.

Our services

How SU and Company helps

We assess whether a GIFT City unit or a mainland company fits the business and set up the chosen entity.

  • IFSC versus mainland comparison
  • Entity incorporation
  • Accounting, tax and compliance after set-up

Questions

Does a trade agreement change FDI rules?

No. Tariffs and services access change; FDI policy, sector caps and FEMA reporting still apply.

General information as at 5 November 2026, not advice for a particular case. Indian and UK rules change often; confirm the current position before acting. UK law points should be confirmed with a UK adviser.

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