India-UK trade pact takes effect, slashing tariffs on textiles, leather, gems and opening auto, spirits markets
The India-UK CETA is now live, with the UK scrapping duties on 96.8% of tariff lines and India cutting 64.1% immediately, phasing another 21% over years. Indian exporters of textiles, leather, footwear, gems and jewellery and processed foods gain access; UK autos (37,000 CBU annual quota) and alcoholic beverages enter India under phased quotas.
What happened
India-UK CETA · India-UK trade pact takes effect, cutting tariffs on textiles, leather, footwear, gems and jewellery, and processed foods for Indian exporters,
Key facts
- $13.44bn India goods exports to UK
- $11.68bn imports
- UK scraps duties on 96.8% tariff lines
- India removes 64.1% at once, phases out 21%
- 37,000 CBU vehicle quota annually
- £90bn UK procurement market
Why this matters
Prioritize M&A, JV and distribution deals that lock in duty-advantaged UK-India trade flows across textiles, leather, gems and premium autos/spirits before competitors build the same cross-border pipelines.
What to watch
- First quarter of UK customs data showing Indian import share by category
- Rules-of-origin dispute or compliance friction reports
- Indian import licensing/quota allocation notifications for autos and spirits
- Bangladesh/Vietnam competitive response or duty concessions
- UK retailer earnings commentary citing India sourcing cost savings
- UK apparel/footwear retailers renegotiate sourcing contracts toward Indian suppliers for AW25/SS26 buys
- Indian export houses expand capacity and file for CETA rules-of-origin certification
- Diageo/Pernod-adjacent and UK auto brands announce India SKU launches under new quotas
- Indian domestic manufacturer associations issue statements seeking safeguard reviews