India gets duty-free access in key sectors like textiles, leather, processed food in UK trade pact

The Print

07-05-2025

India will gain from tariff elimination on about 99 per cent of the tariff lines covering almost 100 per cent of the trade value offering huge opportunities for increase in the bilateral trade between India and the UK, the commerce ministry said.
India and the UK clinched a 'landmark' trade deal that will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies to USD 120 billion by 2030.
New Delhi, May 6 (PTI) Indian exports such as textiles, leather, footwear, and processed foods will attract nil duty in the UK under the free trade agreement between the two countries, offering a major boost to labour-intensive sectors.
Indian goods that will enter the UK at zero duty include minerals, chemicals, gems and jewellery, plastic, rubber, wood, paper, textile, clothing, glass, ceramic, base metals, mechanical and electrical machinery, arms/ammunition, transport/auto, furniture, sports goods, animal products, and processed food.
These goods at present attract import duty in the range of 2-18 per cent.
Further, host of goods in three segments – animal products, vegetable/oil products, and processed food – will enter the British market at nil duty.
Presently there is up to 20 per cent duty on these segments in Britain.
Commenting on the development, Federation of Indian Export Organisations (FIEO) President S C Ralhan said that it is a landmark step that will significantly boost bilateral trade, attract strategic investments, and further integrate Indian businesses into the global value chain.
'This agreement comes at a pivotal time when India is positioning itself as a resilient and reliable trade partner in a rapidly evolving global landscape,' he said.
He added that the India–UK FTA eliminates or significantly reduces tariffs on a wide range of Indian goods, giving domestic exporters preferential access to one of the world's most affluent and consumption-driven markets.
'The free trade agreement marks a transformative milestone for India's textile industry. By unlocking new export opportunities, reducing trade barriers, and enabling greater access to the premium UK market, this agreement promises to empower Indian weavers, manufacturers, and exporters across the value chain, said A Sakthivel, Vice Chairman of the Apparel Export Promotion Council (AEPC).
According to Sudhir Sekhri, Chairman, AEPC, the FTA with UK is 'a bonanza' for Indian apparel exporters, which opens the floodgates of apparel exports to UK'. PTI RR HVA
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