Following the signing of the UK–India Free Trade Agreement on 24 July 2025, optimism surrounding expanded bilateral trade between the United Kingdom and India has been tempered by reports of emerging trade barriers affecting parts of the paper and board sector.
The agreement, concluded by the governments of the UK and India, was designed to reduce tariffs, strengthen market access, and stimulate growth, investment, and job creation. India remains one of the world’s fastest-growing major economies and a strategically important market for UK exporters.
However, industry stakeholders have raised concerns that certain regulatory developments may be complicating implementation and increasing compliance costs for overseas suppliers.
Key Policy Developments Affecting Trade
Among the measures drawing attention is the Minimum Import Price (MIP) introduced in August 2025 on Virgin Multi-Layer Paper Board, set at ₹67,220 (£547) per tonne and scheduled to remain in place until 31 March 2026.
Additionally, Bureau of Indian Standards (BIS) certification requirements apply to selected paper grades, including woodfree uncoated writing, printing, and copier papers. Overseas exporters must obtain certification before shipment, adding administrative procedures, time, and costs. There are concerns within the industry that further coated grades could also become subject to similar requirements.
Anti-dumping duties across several product categories and markets are also reported to be influencing trade flows and limiting participation from international mills.
Industry Reactions
Independent Print Industries Association general manager Brendan Perring stated that while the FTA presents long-term opportunities, some implementation measures may be creating unintended trade barriers.
He noted that the Minimum Import Price has disrupted established supply chains and reduced competitiveness for grades not widely manufactured domestically. The association has urged constructive engagement between the UK and Indian authorities to ensure the agreement delivers practical benefits for businesses.
Total Commodities sales director Jay Patel described the MIP as significantly disruptive, citing reduced pricing flexibility and slower trading volumes.
Similarly, PG Paper Company co-CEO Puneet Gupta highlighted short-term challenges around compliance and pricing but reaffirmed the company’s commitment to maintaining two-way trade between the UK and India.
Gupta previously joined UK Prime Minister Keir Starmer on a trade mission to Mumbai in October, alongside senior UK business leaders and institutional representatives.
Industry Associations’ Perspectives
The British Printing Industries Federation stated that it has not received member feedback indicating significant disruption related to the FTA at this stage, emphasizing the importance of frictionless trade with key partners, particularly the European Union.
Meanwhile, the Confederation of Paper Industries cautioned that free trade agreements must deliver measurable benefits for UK industry and be evaluated carefully to ensure economic balance and competitiveness.
Broader Economic Context
India is considered a structurally important market for the global paper and board industry due to strong demand fundamentals and long-term growth prospects. However, evolving trade regulations may influence supply reliability, pricing dynamics, and investment planning.
Industry observers suggest that ongoing dialogue between governments, manufacturers, and trade bodies will be critical to:
- Ensuring consistent regulatory alignment
- Maintaining supply chain stability
- Supporting sustainable two-way trade
- Preserving competitiveness for UK exporters
Outlook
While the UK–India Free Trade Agreement remains a landmark trade milestone, stakeholders continue to monitor how implementation measures evolve in practice. The coming months will likely determine whether adjustments or clarifications are introduced to address concerns and optimize the agreement’s long-term economic impact.