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India – UK Free Trade Agreement
July 28 , 2025
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- The India–United Kingdom (UK) Free Trade Agreement (FTA), in July 2025, aims to double bilateral trade to $120 billion by 2030.
- The agreement removes tariffs on 99% of Indian exports to the UK and reduces tariffs on 90% of UK goods imported into India, with 85% becoming duty-free within ten years.
- It is expected to boost India’s exports by $5 billion annually.
- The UK eliminated tariffs ranging from 4% to 70% on many Indian products.
- It will support rural and small-scale industries, especially in states like Gujarat, Maharashtra, Tamil Nadu, Uttar Pradesh, and West Bengal.
- The agreement enhances the competitiveness of Indian textiles and apparel against rivals like Bangladesh and Vietnam, with projected $5 billion gains in textile exports alone.
- Leather and footwear exports gain with the removal of up to 16% tariffs.
- Gems and jewellery exports enjoy zero duties.
- The Engineering goods, auto components, mechanical machinery, and organic chemicals will also benefit from tariff elimination.
- Tariffs on automobiles were reduced from over 100% to 10% under quota, aiding Indian auto parts and engine exports.
- Marine products like shrimp and frozen prawns get zero tariffs, opening a $5.4 billion UK market and benefiting coastal communities in Kerala, Andhra Pradesh, and Odisha.
- Agriculture and processed foods get tariff-free access to 95% of products.
- The UK eliminates tariffs on 99.3% of the animal products, 100% of marine goods, and the major industrial items like chemicals, plastics, electrical machinery, and base metals, expanding market access and lowering trade costs.
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