1. Replaces a Colonial-Era Law

It revokes the Indian Bills of Lading Act, 1856—in force for nearly 169 years—and replaces it with a modern legal framework, now called the Bills of Lading Act, 2025 .

2. Simplification and Clarity

• Revised language and streamlined structure enhance readability and usability.
  
  

• Rights and liabilities of carriers, shippers, consignees, and end‑holders are clearly defined to reduce legal ambiguity
  
  

3. International Alignment

The updated law aligns with major international standards like the Hague‑Visby Rules and moves toward adoption of rules similar to the UNCITRAL Model Law on Electronic Transferable Records (MLETR)

4. Legal Continuity

A repeal and savings clause ensures that past actions under the 1856 Act remain valid even after the new law comes into force .

5. Government Direction Powers

Empowers the Central Government to issue implementation guidelines, strengthening administrative control and consistency

6. Ease of Doing Business

• Reduces bureaucratic friction, improves efficiency, and cuts down litigation risks in India’s export-import ecosystem.
  
  

• Industry commentators see it giving India’s shipping sector a competitive boost globally
  
  

🌟 Strategic Implications

• Legal modernization: Marks a symbolic break from colonial-era laws, reflecting India’s aim to build policy frameworks suited to a “Swarnim Bharat” by 2047

• Trade efficiency: Harmonizes shipping documentation with international practice, benefitting exporters, logistics players, and financial institutions.

• Digital readiness: While still paper-based, the new law opens doors for eventual e‑bills of lading in line with global tech-driven reforms

Key Highlights of the India–UK FTA

1. Reduced Tariffs and Duties
   
   

   • Over 90% of tariffs on goods traded between India and the UK are expected to be eliminated or reduced.
     
     

   • Key sectors to benefit: Textiles, Pharmaceuticals, Automotive Components, Engineering Goods, and Food & Beverages.
     
     

2. Simplified Customs Procedures
   
   

   • Easier customs clearance and harmonized standards will reduce delays at ports and borders.
     
     

   • Introduction of digital documentation and paperless trade mechanisms.
     
     

3. Boost to Services and Investment
   
   

   • Liberalization in services like IT, fintech, education, and legal services.
     
     

   • Enhanced investment environment encouraging cross-border joint ventures and partnerships.
     
     

What It Means for Indian Exporters & Importers

• Increased Market Access: Indian exporters will now enjoy preferential access to the UK market for a wide range of products.
  
  

• Cost-Effective Shipping: Lower tariffs and fewer trade barriers translate into reduced shipping costs and faster transit times.
  
  

• Diversification of Trade Routes: A more favorable UK trade climate will encourage businesses to diversify exports beyond EU and US markets.
  
  

Implications for the Logistics Industry

For logistics companies like Aadhya Shipping & Logistics, the FTA is a game-changer:

• Higher Freight Volumes: With trade expected to rise, shipping volumes between India and the UK will increase.
  
  

• Customs Brokerage Opportunities: Demand for experienced customs clearance agents will grow to navigate new documentation processes.
  
  

• Supply Chain Integration: Companies will seek end-to-end logistics partners capable of managing shipments smoothly under the new FTA framework.
  
  

Challenges to Watch

• Regulatory Readiness: Businesses must understand rules of origin, compliance requirements, and sector-specific regulations.
  
  

• Infrastructure Pressure: Indian ports and logistics infrastructure may face increased pressure—calling for smart capacity planning.
  
  

• Exchange Rate Volatility: Trade growth may be impacted by currency fluctuations between INR and GBP.

📊 U.S. Tariff Policy in 2025: A Quick Overview

• April 5, 2025: A 10% base tariff was imposed on most imports globally (except for Canada and Mexico).

• April 9, 2025: The U.S. introduced reciprocal tariffs of up to 50% on over 60 countries with high trade imbalances.

• August 7, 2025: A flat 25% tariff on all Indian imports was announced, replacing earlier rates.

📦 Impact on Indian Exports

India exported nearly USD 66 billion worth of goods to the U.S. in 2024. With the new tariffs:

• Over 87% of Indian exports to the U.S. are affected.

• Exporters are already reporting order cancellations, payment delays, and shrinking margins.

🔍 Why These Tariffs?

According to the U.S. government:

• The tariffs aim to protect American jobs and encourage domestic manufacturing.

• Countries with large trade surpluses, like India, are being penalized.

• India’s continued purchase of Russian oil was also cited as a geopolitical concern.
  
  

🌐 India’s Response & Future Outlook

India is actively:

• Exploring trade partnerships with Europe, ASEAN, and Africa.

• Engaging in diplomatic efforts to negotiate tariff relief.

• Promoting initiatives under "Mission 500" to reach USD 500 billion in bilateral trade by 2030.
  
  

🧾 Conclusion

2025 has reshaped global trade policies, and India is at the center of this transformation. While the new U.S. tariffs pose serious challenges, they also present an opportunity for Indian businesses to diversify, innovate, and build stronger trade ties worldwide.