India-UK FTA to make British goods cheaper and boost Indian exports from July 15
New Delhi, July 14
The India-UK Comprehensive Economic and Trade Agreement will come into force on Wednesday, paving the way for cheaper British goods in India while granting Indian exporters near-total duty-free access to the UK market.
Under the pact, tariffs on a wide range of British products -- including Scotch whisky, gin, chocolates, biscuits and cosmetics -- will begin declining from July 15. However, duty reductions for several items will be phased in over the coming years.
Meanwhile, Indian exporters will receive zero-duty access on around 99 per cent of tariff lines, covering almost the entire value of the country's exports to the UK.
Labour-intensive sectors such as textiles, leather, footwear, marine products, gems and jewellery, sports goods and toys are expected to be among the biggest beneficiaries.
Similarly, engineering goods, auto components and organic chemicals are also set to gain from improved market access.
The rules were issued by the Central Board of Indirect Taxes and Customs (CBIC), laying down the framework for determining whether goods qualify for preferential tariff treatment under the pact and specifying compliance requirements for exporters and importers.
Union Commerce and Industry Minister Piyush Goyal had earlier said the CETA would deepen collaboration between the two countries across trade, investment and innovation while creating new opportunities for businesses and professionals.
He urged Indian companies to strengthen engagement with their UK counterparts and translate the agreement into sustained business growth.
Earlier in June, the minister stated that the landmark agreement will help Indian farmers, fishermen, artisans and small businesses prosper globally and accelerate job creation, while enabling the common man to access high-quality goods at competitive prices.
He noted that by unlocking the premium UK market, it creates attractive global opportunities for women entrepreneurs, youth, startups and MSMEs, while empowering the underprivileged without compromising India's core interests
Signed on July 24, 2025, after 14 rounds of negotiations, the CETA comprises 30 chapters covering goods, services, digital trade, financial services, intellectual property, innovation, sustainability and government procurement.
Additionally, India will reduce or eliminate tariffs on 90 per cent of tariff lines, with 85 per cent becoming fully duty-free over the next decade.
Tariffs on British Scotch whisky will be cut from 150 per cent to 75 per cent initially before declining to 40 per cent over 10 years, while duties on British automobiles will be reduced gradually under a quota-based mechanism.
The pact also provides relief for eligible Indian professionals working temporarily in the UK through the Double Contributions Convention, allowing them to avoid paying social security contributions in both countries for a specified period.
— IANS
Reader Comments
Scotch whisky at 40% duty after 10 years? That means our desi brands like McDowell's and Royal Stag will have to compete with cheaper imports. But at least we get premium goods at lower prices. Win-win for consumers!
As someone who works in UK-India trade relations, this is a massive step forward. The Double Contributions Convention is a game changer for Indian IT professionals in London – no more double paying into pension funds!
But I'm curious how the quota mechanism for British cars will work. Will we see more JLRs on Indian roads?
The government claims this helps farmers and small businesses, but how exactly? Most of our agricultural exports have faced non-tariff barriers in the UK. And reducing duties on chocolates and biscuits might hurt local brands like Parle and Britannia. Need more transparency on implementation!
Living in London and watching this unfold – Indian gems and jewellery exporters are going to clean up! 🇮🇳💎 Our handmade crafts and organic products are already in huge demand here. Zero duty access means competitive pricing that benefits everyone.
I'm all for global trade but 150% to 40% duty cut on Scotch whisky over 10 years? That's still a steep tariff. Meanwhile, British cars get quota protection. Feels like we're giving more than we're getting in some sectors. Bhai, negotiate harder next time!
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.