Described by UK Prime Minister Sir Keir Starmer as "a landmark moment for both of our countries" when it was signed in July, the Free Trade Agreement (FTA) between the United Kingdom and India is set to have a hugely significant impact on global trade.
For businesses in both India and the UK, the FTA promises reduced barriers, simplified processes, and the potential for new growth across multiple sectors. For the logistics industry - and air cargo in particular - the FTA opens the door to a fresh wave of opportunity.
The ability to transport goods quickly, securely, and reliably between the UK and India will be central to realising the agreement’s promise. As a strategic enabler of global trade, IAG Cargo is ideally positioned to help businesses capitalise on the new prospects that the agreement presents.
We recently caught up with Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo, to explore how we are supporting businesses from a wide range of sectors in this evolving landscape.
A new chapter of opportunity
“India and the UK have always enjoyed strong commercial ties, but the Free Trade Agreement marks a new chapter of opportunity,” Camilo explains. “With IAG Cargo’s extensive global network, we are ready to play our part in facilitating enhanced trade.”
“We anticipate a significant rise in trade volumes, not only in pharmaceuticals and textiles, but also in sectors such as consumer electronics, automotive components, and high-value perishables. The key is ensuring these goods move efficiently and safely.”
For businesses in these sectors, speed, reliability, and precise handling are critical – and these businesses continually place their trust in IAG Cargo’s suite of specialised services to meet these demands.
Pharmaceuticals, for instance, move under our Constant Climate service, which guarantees strict temperature control from origin to destination, while perishables, such as fresh fruit and vegetables, benefit from our Constant Fresh service, which ensures quality and freshness all year-round. For urgently-needed garments, electronics, and auto parts, our Prioritise and Critical services deliver the speed required for these time-sensitive shipments.
Another key IAG Cargo product for the Indian market is Courier, which supports the rapid growth of e-commerce shipments from India to the UK. This fast, reliable, and flexible service allows goods to be accepted as little as 90 minutes before departure, with no pre-booking required. Shipments are then typically ready for collection within 60 minutes of arrival at their destination.
“Every shipment tells a story,” Camilo says. “When a pharmaceutical company is sending a temperature-sensitive vaccine or a manufacturer is exporting electronics to meet seasonal demand, they rely on us to provide certainty. That reliability is the foundation of trust, and it’s what allows businesses to plan and scale confidently.”
Growth markets in Latin America and Canada
While the UK-India corridor is expected to flourish under the FTA, the story does not end there. As they seek to diversify their trade portfolios, Indian exporters are increasingly looking beyond Europe and North America to new growth markets across Latin America, Canada, and the Middle East.
IAG Cargo’s extensive global network provides businesses with direct connectivity to these regions, enabling organisations to access and expand in high-demand markets efficiently.
“Our network allows Indian exporters to reach multiple regions without unnecessary delays,” Camilo explains. “It’s not just about moving goods, it’s about connecting them to the right markets, in the right way, at the right moment. That capability is especially important for time-sensitive shipments, where speed and precision can make all the difference.”
The rise of digitalisation
Digitalisation is another key advantage. India is one of the world’s most advanced adopters of digital cargo solutions, with IAG Cargo’s digital-first approach being widely embraced. We have seen a near-universal adoption of electronic air waybills (e-AWB), which, when combined with online booking and shipment management, enables customers to book, manage and track cargo quickly and easily.
“The digitalisation of our processes is about much more than customer convenience,” Camilo adds. “It’s about empowering businesses to operate with flexibility in an ever-changing global trade environment. Customers can monitor and manage their shipments in real time and make informed decisions faster, something which is essential as volumes grow, and supply chains become more complex.”
Pivotal role in supporting international trade
Beyond being a trade deal, the UK-India Free Trade Agreement demonstrates a commitment from both nations to deepen economic ties and foster growth. For IAG Cargo, it reinforces the pivotal role air freight plays in supporting international trade.
“Trade enables ambition,” Camilo adds. “With the UK-India corridor becoming one of the most dynamic global trade lanes, we will continue to connect markets, strengthen supply chains, and help our customers succeed in an increasingly interconnected world.”
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