According to an update on the United Kingdom government website, it will move India from the 'red' to 'amber' list from August 8.
Other countries which have been moved to the amber list include UAE, Qatar and Bahrain.
"UAE, Qatar, India and Bahrain will be moved from the Red List to the Amber List.All changes come into effect Sun 8th August at 4am," the UK Transport Secretary tweeted.
The decision has come as a relief for the Indian diaspora in the UK, who had been demanding the easing of travel norms between India and Britain.
The new designation means that people travelling from India to the UK will have to undergo a 10-day quarantine at home.
They must take a COVID test three days before departure and book in advance for two COVID tests to be taken upon arrival in England on or before day two and on or after day eight as well as complete a passenger locator form on arrival.
Travellers under 18 and those fully vaccinated in the UK are exempt from the home quarantine, as well as those who have received two doses of COVID vaccine in the EU and US.
In April, the United Kingdom had added India to its travel "red list" following the emergence of a new COVID strain that led to a second wave.
India yesterday reported 42,625 new COVID-19 cases, 36,668 recoveries and 562 deaths in 24 hours, as per the Ministry of Health and Family Welfare.