← External Forces: Trade, Geopolitics & Market Access (all topics)
India-UK FTA
What it is
The India-UK Comprehensive Economic and Trade Agreement, negotiated from 2022 and in force from 15 July 2026, alongside a Double Contribution Convention on social security
The UK removes tariffs on ~99% of Indian tariff lines immediately. India liberalises more slowly - 64% of UK tariff lines duty-free at entry, rising to ~85% over a decade, with staged cuts on vehicles and spirits
Impact on industries
- Largest gain is in labour-intensive exports - the 12% UK duty on apparel goes to zero at once, worth ~$1.6bn a year and closing the gap to Bangladesh
- Leather, footwear, gems, engineering goods and processed foods shed duties as high as 70%, but only where CETA origin documentation is in order
- Two-way opening: UK vehicles drop from 110% to 10% duty and Scotch from 150% to 75%, so Indian producers in autos, spirits and dairy face new import competition
- Agrochemical and pharma gains are modest, running through regulatory cooperation rather than headline duty elimination