India, UK sign trade deal: Cheaper imports.
India and the United Kingdom have signed a landmark trade agreement that is set to reduce tariffs on a range of British products, including whisky, luxury cars, and various cosmetics. The move is expected to lower prices for Indian consumers while giving British exporters easier access to one of the world’s largest markets. The deal also aims to deepen economic ties and significantly boost bilateral trade volumes between the two countries. It marks a new chapter in India-UK relations, promoting investment, job creation, and closer cooperation across multiple sectors.
India–UK Free Trade Agreement Signed: A Game-Changer for Bilateral Trade
New Delhi, July 25:
In a historic move, India and the United Kingdom have inked a landmark Free Trade Agreement (FTA) aimed at boosting bilateral trade, slashing tariffs, and opening new avenues for economic cooperation. Officially titled the Comprehensive Economic and Trade Agreement (CETA), the deal was signed on Thursday by India’s Commerce Minister Piyush Goyal and UK’s Trade Secretary Jonathan Reynolds.
Valued at nearly USD 34 billion annually, the FTA is expected to give a major push to exports and bring a wide range of benefits for both countries, especially across sectors such as agriculture, textiles, engineering, and pharmaceuticals.
**Agriculture: A Big Win for Indian Farmers**Indian agricultural exporters have a lot to celebrate. The UK will now offer duty-free access to a wide range of products including fruits, vegetables, spices like turmeric, cardamom and pepper, and ready-to-eat foods like pickles and mango pulp.
Emerging products like jackfruit, millets, and organic herbs will also find a place in UK markets.
**Marine Products: Cracking Open a New Market**Tariffs on Indian marine products, including shrimp, tuna, fishmeal, and feed, will be eliminated, making them far more competitive in the UK’s USD 5.4 billion marine import market. Sanitary and phytosanitary measures in the deal will also make it easier for Indian exporters to meet UK standards, reducing the risk of rejection and delays.
**Textiles, Leather, and Apparel: India Levels the Playing Field**With zero-duty access on 1,143 tariff lines, Indian exporters can now compete on an equal footing with nations like Bangladesh and Pakistan, which previously enjoyed preferential treatment. High growth is expected in ready-made garments, home textiles, carpets, and handicrafts.
Similarly, the leather sector—especially MSMEs in Agra, Kanpur, Kolhapur, and Chennai—will benefit from a complete tariff elimination (from 16% to zero) on leather goods and footwear. Exporters now aim for over USD 900 million in leather exports in the next couple of years.
**Engineering, Chemicals, and Pharma: Unlocking Potential**Strong growth is forecasted in electric machinery, auto parts, and construction equipment.
Meanwhile, the Indian pharma sector—which currently has under USD 1 billion in UK exports—will benefit from zero-duty access on generics and medical devices, giving a big boost to affordability and availability.
**Other Sectors: A Broader Boost**- Plastics: Duty-free access on films, packaging, and kitchenware will improve India’s competitiveness against European suppliers.
- Gems & Jewellery: With reduced tariffs, exports—currently at USD 941 million—are expected to double within three years.
- Sports Goods & Toys: Soccer balls, cricket gear, and toys will become more competitive compared to products from China and Vietnam. Services, Innovation & Mobility
The agreement is not just about goods. It also covers services and professional mobility, easing visa norms for Indian professionals—such as yoga instructors, classical musicians, and chefs—seeking to work on projects in the UK. There’s also an innovative “Innovation Chapter,” the first of its kind, which will support joint research, tech development, and startups in emerging sectors.
**Final Word: A New Chapter Begins**With 99% of tariffs eliminated and nearly 100% of trade value covered, the India–UK FTA is set to redefine the economic partnership between the two nations. It promises more trade, better prices, and greater opportunities for businesses and consumers alike. As both countries look ahead, this deal stands as a testament to cooperation, resilience, and shared economic ambition.