India-UK trade pact takes effect, cuts tariffs
New Delhi, July 15 -- The India-UK Comprehensive Economic and Trade Agreement (CETA) comes into force on Wednesday, immediately lowering tariffs on a range of goods traded between the two countries.
Indian consumers will pay less for products such as Scotch whisky, salmon and cod, while Indian exports including garments, gems and jewellery, leather goods, pharmaceuticals and processed foods will gain duty-free access to the UK market.
The most immediate benefit for Indian consumers will be cheaper Scotch whisky. Import duties will be cut from 150% to 75% from Wednesday and reduced further to 40% over the next 10 years.
Imports of UK seafood, including salmon and cod, will also become cheaper as tariffs are slashed from 33% to zero with the agreement's entry into force.
For Indian exporters, the agreement provides zero-duty access for labour-intensive products such as textiles, gems and jewellery, leather, footwear, organic chemicals, artisanal products, ceramics, auto components, machinery, pharmaceuticals and processed foods, significantly improving their competitiveness in the UK market.
Government officials and industry representatives said the agreement is expected to particularly benefit labour-intensive sectors, including micro, small and medium enterprises (MSMEs), as well as agriculture.
For example, the UK's global imports in textiles and clothing are worth $28.75 billion and India's current exports in this segment to the country are merely $1.94 billion because of up to a 12% tariff in the market. This levy will become zero from Wednesday, giving an edge to Indian exporters compared to competitors such as Indonesia, Vietnam, Bangladesh, and Sri Lanka, they said.
The potential gains extend beyond textiles. The UK imports marine products worth $4.93 billion, processed food worth $54.25 billion, and furniture and sports goods worth $24.24 billion annually. India's exports in these categories are only $0.12 billion, $0.37 billion and $0.27 billion, respectively. Until now, Indian exports faced tariffs of up to 20% on marine products, 70% on processed foods and 4% on furniture and sports goods. Under CETA, tariffs on marine products and furniture and sports goods will be eliminated immediately, while 97.3% of tariff lines covering processed foods will become duty-free.
Officials also see significant opportunities for agricultural exports. The UK imports more than $90 billion worth of agricultural and processed food products annually, while India's exports to the country stand at only $1.11 billion. "Key agri-export clusters in Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu, and Punjab will significantly benefit," one official said.
Alongside CETA, the Double Contribution Convention (DCC), signed in February 2026, will also come into effect on Wednesday. Officials described it as one of the biggest gains for India's services sector, particularly information technology....
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