UK exports in sectors such as luxury vehicles and spirits are expected to benefit, while Indian textiles and leather products will gain as the agreement eliminates tariffs on 99 per cent of exports from India and reduces duties on 90 per cent of British goods, analysts say.

“The earliest benefits will be tariff reductions on goods, simplified customs procedures, and improved market access for businesses in the UK and India,” said Christopher Blackburn, a London-based analyst.

“Bureaucratic hurdles that have caused headaches in the past will be removed or reduced.”

But analysts said the India-UK Free Trade Agreement’s longer-term value would depend on how effectively both governments and businesses handled customs compliance, product standards and other practical barriers to trade.

The agreement would provide a “practical blueprint” for resolving issues such as tariffs, services, mobility of people and regulatory cooperation, Blackburn said. “It’s good news for both sides.”