India-UK CETA takes effect, zeroing UK tariffs on Indian textiles, footwear and jewellery
The India-UK CETA enters into force Wednesday, liberalising 98.8% of UK tariff lines covering 99.5% of Indian export value. Duties fall to zero on textiles/clothing (from up to 12%), leather/footwear (from 16%) and gems/jewellery (from 4%) — a direct boost for Indian apparel and jewellery exporters and retail sourcing.
What happened
India-UK CETA takes effect Wednesday, cutting UK tariffs to zero on Indian textiles, clothing, leather, footwear and gems/jewellery — key consumer-goods export
Key facts
- 98.8% tariff lines liberalised by UK
- 99.5% of Indian export value
- textiles/clothing UK duty up to 12% to zero
- leather/footwear 16% to zero
- gems and jewellery 4% to zero
- textiles exports $1.94bn
- gems and jewellery exports $1.03bn
- bilateral goods trade $25.12bn FY26
Why this matters
The tariff shift makes UK sourcing relationships and Indian apparel/jewellery capacity more valuable, opening partnership, supply-agreement and acquisition angles to capture the newly duty-free trade lane.
What to watch
- UK import volume data by origin (first 1-2 quarters post-CETA)
- Indian textile/gem exporter order-book and guidance updates
- UK retailer sourcing-mix disclosures and gross-margin commentary
- Bangladesh/Vietnam export share erosion signals
- Rules-of-origin and value-addition compliance friction
- Indian export houses (Welspun, Trident, Titan-linked, gem clusters) push UK buyer engagement and forward orders
- UK sourcing teams (M&S, Next, Primark, ASOS) re-tender Indian supplier RFQs to lock duty savings
- Freight/logistics firms scale India-UK apparel lanes
- Competitor-origin suppliers cut prices or seek their own UK/EU FTAs