The UK-India FTA has changed the import cost equation for British businesses. Here's your complete guide to sourcing from India — products, suppliers, duties, and what to watch out for.
In summary: The UK-India Free Trade Agreement, signed in 2025, is one of the most significant trade deals in Britain's post-Brexit era. It cuts tariffs on hundreds of goods, making India a genuinely compelling sourcing alternative for UK SMEs. This guide covers exactly how to find Indian manufacturers, what products to source, how duties and logistics work, and what to watch out for before you place your first order.
Let me set the scene. It's 2026, and British businesses are quietly rethinking where they source their products. China is still dominant — and for good reason — but rising costs, longer lead times, and geopolitical uncertainty have had many UK SMEs scouring the globe for alternatives.
Enter India. With a population of 1.4 billion, a growing manufacturing sector, and — crucially — a freshly signed Free Trade Agreement with the UK, India has moved from "interesting option" to "serious contender" almost overnight.
I've been watching this shift closely. For years, Indian manufacturing sat in an awkward middle ground: impressive in some sectors (textiles, pharmaceuticals, leather), patchy in others. But the UK-India FTA changes the financial equation entirely for British importers. Tariff reductions on hundreds of product categories mean your landed cost from India could be significantly lower than from China — and that's before you factor in the "Made in India" angle, which resonates strongly with UK consumers who want ethical, artisan-feel products.
The UK-India FTA, which came into force in 2025, is the most comprehensive trade deal the UK has signed since Brexit. At its core, it reduces or eliminates tariffs on a substantial portion of goods traded between the two countries.
For UK importers, the key changes are: significant tariff reductions on textiles, garments, and fashion accessories from India to the UK; lower duties on leather goods, footwear, and luggage; reduced tariffs on engineering goods, ceramics, and jewellery; and eased rules of origin — meaning goods processed in India qualify for preferential rates even if some components originated elsewhere.
In plain English: if you're importing textiles, fashion, leather, or home goods from India, your import duty bill just got noticeably smaller. And over the next decade, many of those tariffs are scheduled to reduce further.
Sourcing Hack #1:
Before assuming India is cheaper, do the full landed cost comparison. Take your China supplier's unit price, add freight, duties (at the new post-FTA rate), and VAT. Do the same for an Indian quote. Then compare. India doesn't win on everything — but on garments and leather goods, the margin advantage post-FTA is very real.
India's manufacturing strengths are quite different from China's. Rather than being a generalist powerhouse for electronics and plastics, India excels in specific categories where craft, natural materials, and labour-intensive production shine.
Textiles & Garments — India is the world's second-largest textile exporter. Cotton, linen, handloom fabrics, and sustainable fashion are genuine Indian specialisms. If you're building a clothing brand with an ethical or artisan angle, India is hard to beat.
Leather & Footwear — Cities like Agra, Kanpur, and Chennai have centuries of leather-working heritage. Handbags, wallets, belts, and shoes sourced from Indian workshops can rival European quality at a fraction of the price.
Home Décor & Handicrafts — Handcrafted candles, ceramics, carved wood, brass ornaments, and rugs. India produces beautiful home goods with a quality and character that mass-production factories simply can't replicate. (Speaking of which — if candles are your thing, check out our guide to launching a white label candle brand from China.)
Pharmaceuticals & Nutraceuticals — India is the "pharmacy of the world." If you're in the supplements, health, or wellness space, Indian manufacturers supply to the NHS and global pharmaceutical companies. The quality standards exist — you just need to verify them.
Jewellery & Accessories — Jaipur is the gemstone capital of the world. Indian jewellery, both gold and fashion, is a major export category with strong craftsmanship at competitive prices.
Sourcing Hack #2:
When sourcing from India (or anywhere new), always start with a sample order before committing to a bulk run. A £200 sample order could save you from a £20,000 disaster. India's quality can vary enormously between manufacturers — and I've seen the disasters firsthand. Don't skip this step.
This is where a lot of UK businesses get stuck. Finding suppliers in China is relatively familiar territory — Alibaba, trade fairs, sourcing agents. India's ecosystem is a little different.
IndiaMart — India's equivalent of Alibaba. Huge supplier database, but requires the same rigorous verification process you'd apply anywhere. Our guide on safety checks before your first purchase applies equally here.
India ITPO Trade Fairs — The India International Trade Fair in Delhi and various sector-specific fairs are excellent for meeting manufacturers in person. If you're sourcing textiles, the India International Garment Fair is one of the world's best.
Sourcing Agents — A good sourcing agent with India connections is your fastest route to verified, trustworthy manufacturers. The role of a sourcing agent is just as valuable in India as it is in China — they know who's credible, who's not, and can negotiate in the local language and cultural context.
Sourcing Hack #3:
When vetting an Indian manufacturer for the first time, always request their GST registration number (India's equivalent of a VAT number) and their export licence. Legitimate exporters have both. If a supplier hesitates or can't provide these immediately, walk away — it saves you from a world of pain later.
Getting goods from India to the UK is more straightforward than many people assume. India has well-established port infrastructure, and major UK freight forwarders handle India lanes regularly.
Sea freight from India to the UK (typically from Mumbai, Chennai, or Nhava Sheva ports) takes around 20–28 days. Air freight from major Indian airports takes 5–8 days. For first samples, air freight is sensible. For bulk orders, sea is your friend — and your margin will thank you.
Under the UK-India FTA, many tariff lines have been reduced or eliminated. However, duties vary enormously by product category (HS code). Always check the current UK Global Tariff schedule via HMRC's online tool before assuming zero duty. Commodity codes matter enormously here, so get them right or instruct a customs broker. For a comprehensive walkthrough of UK import costs, our Complete Guide to Importing to the UK covers the mechanics in detail — most of it applies equally to India sourcing.
Sourcing Hack #4:
Get your HS codes right before you import. The same product can attract wildly different duty rates depending on how it's classified. Use HMRC's Trade Tariff tool, or ask your freight forwarder to confirm classification before you finalise your supplier agreement. A small error here can cost you thousands.
India isn't a China replacement — it's a complement. Here's an honest comparison.
India wins on: Natural and craft-intensive products (textiles, leather, handicrafts, handmade goods), ethical and sustainable supply chain narratives, post-FTA cost advantage on qualifying goods, lower MOQs for artisan products, and strong English language communication with suppliers.
China still wins on: Electronics and tech products, large-scale manufacturing consistency, plastics and injection moulding, speed of production, Alibaba's enormous supplier ecosystem, and established logistics infrastructure at scale.
For UK SMEs building brands around quality, sustainability, or craftsmanship, a dual-sourcing strategy — China for one product line, India for another — can be incredibly powerful. We've written about cutting costs by sourcing directly and the principles there apply just as much to India as to China.
At Epic Sourcing, we've been helping UK businesses source products internationally for years. As the UK-India FTA opens new doors, we're actively building our India supplier network to help clients take advantage of the new tariff landscape.
Whether you're looking to explore India for the first time, run a trial order alongside your existing China supply chain, or fully transition a product line to Indian manufacturing, we'd love to talk. Our White Label Package, Private Label Package, and Secret Label Package are all available for India-sourced products — not just China and Vietnam.
Book a free strategy call with the team and let's explore what India could do for your product margins.
It depends on the product category. For textiles, leather goods, and handcrafted items, India is often cheaper — especially post-FTA. For electronics, plastics, and high-volume manufactured goods, China typically remains more cost-effective. Always compare full landed costs (unit price + freight + duty + VAT) before deciding.
Post-FTA duty rates vary by HS code (product classification). Many textile and garment categories have seen significant reductions. Check the current UK Global Tariff schedule via HMRC's Trade Tariff tool and confirm your commodity code with a customs broker before importing.
Sea freight from Indian ports (Mumbai, Chennai) to UK ports takes approximately 20–28 days. Air freight from major Indian airports takes 5–8 days. For bulk orders, sea freight is typically the most cost-effective option.
You don't technically need one, but a good sourcing agent with India expertise will save you significant time and money. They'll vet suppliers, negotiate pricing, manage quality control, and navigate logistics — all considerably harder to do remotely as a first-time India importer.
India excels in textiles, garments, leather goods, footwear, handicrafts, home décor, jewellery, pharmaceuticals, and engineering components. For UK SMEs, the most compelling categories for brand-building are typically fashion, leather, and artisan home goods.
The FTA reduces import tariffs on qualifying goods, which directly lowers the landed cost for UK businesses importing from India. Smaller businesses benefit just as much as larger ones — in fact, India's lower MOQs for many artisan products make it particularly accessible for SMEs starting out with smaller order volumes.
Written by TK Wang, Founder & Director @ Epic Sourcing | hello@epicsourcing.co.uk | 07551 136406
