India-UK trade deal: THESE products will now get Zero Duty access in free trade agreement

Mint

24-07-2025

India on Thursday signed a free trade agreement, officially dubbed as the Comprehensive Economic and Trade Agreement (CETA), with the UK – its 16th trade pact so far – as the country aims to boost bilateral trade and investments.
A free trade agreement is an arrangement between two or more countries where they agree either to end or reduce customs duties on the maximum number of goods traded between them, besides cutting down non-trade barriers on a significant value of imports from partner countries and easing norms to promote services exports and bilateral investments.
India has protected the interest of domestic farmers by excluding dairy products, edible oils and apples in the FTA, while securing zero duties on 95 per cent of agriculture and processed food items.
Processed Food - mango pulp, pickles, and pulses, fruits, cereals, spice mixesVegetable/oilTransport/autoLeather/footwearElectronic machineryHeadgear/glass/ceramicTextiles/clothingWood/paperBase metalsMechanical machineryMineralsChemicalsPlastic/rubberInstruments/clocksGems and jewelleryFurniture/sports goodsArms/ammunitionsTurmeric, pepper, cardamom
Marine products - shrimp and tuna, fishmeal, and feeds
The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynold in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
The FTA is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket, according to Indian officials.
The deal, firmed up after three years of negotiations, is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99 per cent of tariff lines (product categories) covering almost 100 per cent of the trade values, they said.
According to a PTI report, the UK said Indian consumers will benefit from improved access to the best British products – from soft drinks and cosmetics to cars and medical devices – as average tariffs will drop from 15 per cent to 3 per cent after the FTA kicks in.
The UK already imports 11 billion pounds in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper for British consumers and businesses to buy Indian products and boost Indian businesses' exports to the UK, it said in a statement, hours before the FTA was inked.
"Our landmark trade deal with India is a major win for Britain," Starmer was quoted as saying in the readout.