The India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to provide fresh momentum to the air cargo corridor between the two countries, with tariff reductions opening opportunities for higher-value and time-sensitive trade. The agreement came into force on July 15, 2026, providing zero-duty or reduced-duty access for nearly 99% of India’s exports to the UK.
The tariff benefits cover a broad range of products, including textiles and apparel, pharmaceuticals, engineering goods, marine products, electronics, automotive components, chemicals, gems and jewellery and perishables. These commodities are particularly suited to airfreight when speed, reliability and product value are critical.
The potential impact is already visible in the existing India-UK air cargo market. Heathrow handled more than 75,000 tonnes of import and export cargo with India during the first half of 2026, making India the airport’s second-largest cargo market by tonnage. Industry stakeholders expect CETA-driven trade growth to add incremental volumes to this established corridor.
Bengaluru is another key gateway, with the BLR-UK trade lane currently handling around 1,200 metric tonnes of air cargo per month. The cargo mix includes pharmaceuticals, high-tech products, engineering goods, aerospace components, automotive products, fashion and perishables.
Airline capacity is also expanding. IAG Cargo is adding a third daily London Heathrow-Delhi service from September 19, taking its London Heathrow-India capacity to 70 weekly services, compared with 56 in 2025. Increased frequencies to Mumbai and Bengaluru will further strengthen available belly-hold capacity.
However, logistics companies caution that tariff reductions alone will not immediately translate into higher cargo volumes. Exporters still need to adapt sourcing and production arrangements, meet rules-of-origin requirements, complete documentation and secure sufficient transport capacity.
The CETA has already seen significant initial trade activity, with more than 50 export consignments worth over $140 million flagged off from Indian ports, airports, ICDs, SEZs and factories on the first day of implementation. The shipments included electronics, pharmaceuticals and gems and jewellery.
With bilateral trade targeted to reach $100-120 billion by 2030, the agreement could gradually diversify and expand the India-UK airfreight market, particularly for high-value, time-sensitive and premium consumer goods.