Tarrif on Indian Exports after UK FTA

• Marine Products: 20% ➝ 0%
• Arms/Ammunition: 2% ➝ 0%
• Electrical Machinery: 14% ➝ 0%
• Gems & Jewellery: 4% ➝ 0%
• Leather/Footwear: 16% ➝ 0%
• Processed Food: 70% ➝ 0%
• Textiles: 12% ➝ 0%
• Auto/Transport: 18% ➝ 0%

The India-UK Free Trade Agreement (FTA), officially known as the Comprehensive Economic and Trade Agreement (CETA), was signed on July 24, 2025. This landmark agreement is set to significantly reduce and eliminate tariffs on a wide range of goods traded between the two countries, with a primary goal of doubling bilateral trade to $120 billion by 2030.

Tariffs on Indian Exports to the UK after the FTA:

A major highlight of the FTA for India is that approximately 99% of Indian exports to the UK will now receive duty-free access, covering nearly the entire trade value. This is a significant advantage for Indian exporters.

Here’s a breakdown of the impact on key Indian export sectors:

  • Textiles and Clothing: This sector will gain immensely with zero-duty access across 1,143 product categories, removing the tariff disadvantage India previously faced compared to countries like Bangladesh and Cambodia.
  • Marine Products: UK tariffs on Indian marine products have been eliminated, creating a significant export opportunity for India, especially for items like shrimp, tuna, fishmeal, and feeds, which were previously taxed between 4.2% and 8.5%.
  • Agriculture and Processed Foods: Over 95% of India’s agricultural and processed food products will enjoy duty-free access to the UK market. This includes items like turmeric, cardamom, pepper, mango pulp, pickles, pulses, fruits, vegetables, cereals, and ready-to-eat meals. This is expected to boost agri exports by over 20% in the next three years.
  • Gems and Jewellery: Tariffs on gems and jewellery exports (which were up to 16%) have been removed, projected to double India’s exports in this sector to the UK within 2-3 years.
  • Engineering Goods: Indian engineering exports to the UK are expected to surge with duty-free access for various machinery, equipment, and components.
  • Leather and Footwear: Tariffs on Indian leather and footwear, which were previously up to 16%, have been eliminated.
  • Chemicals: The FTA is anticipated to lead to a significant increase (30-40%) in India’s chemical exports to the UK, reaching an estimated $650-750 million in FY 2025-26, due to zero-duty access on these products.
  • Pharmaceuticals and Medical Devices: The FTA does away with tariffs on Indian generics, enhancing their competitiveness in the UK market. Medical devices like surgical instruments and diagnostic equipment will also enjoy zero-duty access.
  • Sports Goods and Toys: Indian sports goods (e.g., soccer balls, cricket gear, rugby balls) and non-electronic toys will see improved competitiveness with duty-free access.
  • Electronics: Exports of electronic products, including smartphones, optical fiber cables, and inverters, are expected to increase with zero-duty access.14
  • Other sectors: Duty-free access will also benefit Indian exports in sectors like rubber, plastics, auto components, tea, and coffee.

It’s important to note that while the agreement has been signed, some duty cuts may be phased in over a period of up to 10 years to allow industries to adjust. The agreement also includes provisions to simplify visa procedures and liberalize entry categories for Indian professionals, further boosting trade in services.