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Overview
The UK-India Free Trade Agreement (FTA), also known as the Comprehensive Economic and Trade Agreement (CETA), entered into force on 15 July 2026. This marks a major step forward in the UK’s trade relationship with India. For UK exporters, this agreement means improved access to one of the world’s largest and fastest growing markets. It removes or lowers tariffs on thousands of products, streamlines customs procedures, and clarifies trading rules.
India is a market of over 1.4 billion people with rising demand for high-quality goods. For UK businesses, this translates into new opportunities across sectors such as food and drink, pharmaceuticals, engineering, and cosmetics. By reducing costs at the border and simplifying customs processes, the FTA helps UK firms compete more effectively and plan with confidence.
Opportunities for UK businesses
Before the FTA, UK exporters faced tariffs that could add significant costs to their products, making it harder for them to be competitive in India. Exporters also reported problems with customs procedures being complex and time-consuming, creating uncertainty and delays.
The FTA changes this by:
- eliminating or reducing tariffs on 90% of Indian imports of UK goods
- providing clear timelines for staged tariff elimination or reductions in many sectors
- ensuring more predictable and efficient customs procedures
- encouraging digital customs systems and advance rulings for clarity
For UK exporters this means lower costs, minimised administrative hurdles, and greater certainty and predictability when planning export strategies.
The FTA delivers benefits for key UK sectors. For instance:
- Food and drink: tariff elimination or reductions on processed foods and drinks, such as spirits, lamb and fresh and frozen fish will support UK producers entering India’s growing consumer market.
- Textiles and apparel: UK fashion brands will gain improved access with reduced tariffs.
- Chemicals and pharmaceuticals: tariff elimination or reductions – as well as regulatory cooperation – will support many UK firms in high-value manufacturing and life sciences.
- Engineering and machinery: tariff elimination or reductions will enhance competitiveness for UK exporters of industrial and construction equipment.
Exporters in these sectors should review the relevant tariff schedules and rules of origin to understand how their products are treated under the agreement.
Tariff elimination and reductions
The agreement removes or reduces tariffs on most UK goods exports to India. For many products, tariffs are eliminated immediately upon entry into force. For others, tariff elimination or reductions are phased in over several years in equal instalments to allow adjustment in sensitive sectors. This gives UK businesses a clear and predictable pathway to duty-free access, allowing them to plan pricing and investment strategies with confidence.
Case Study 1: immediate tariff elimination – HS code 0302.14 (Fresh or chilled Atlantic salmon)
Fresh or chilled salmon under the harmonised system (HS) code 0302.14, which is one of the main UK agrifood exports, was previously subject to a 33% tariff in India.
Under the FTA, this tariff has been eliminated immediately upon entry into force. UK exporters can now ship salmon to India duty-free.
Tariff liberalisation has been secured across different agrifood products and drinks, enabling easier access to the Indian market and its growing middle class.
Case Study 2: staged tariff reduction – HS code 8708.40 (Gearboxes for motor vehicles)
Before entry into force of the FTA, UK exporters of gearboxes for motor vehicles, classified under HS Code 8708.40, faced a 16.5% tariff when exporting to India.
Under the FTA, this tariff will be gradually eliminated over a 10-year period:
| Year | Tariff |
|---|---|
| 2026 (from 15 July) | 14.85% |
| 2027 | 13.20% |
| 2028 | 11.65% |
| 2029 | 9.90% |
| 2030 | 8.25% |
| 2031 | 6.60% |
| 2032 | 4.95% |
| 2033 | 3.30% |
| 2034 | 1.65% |
| 2035 and beyond | 0.00% |
This staged liberalisation gives UK manufacturers a clear roadmap to duty-free access. For UK automotive suppliers, this means increasing competitiveness year-on-year and the ability to plan pricing and exports strategies with confidence.
Qualifying for preferential tariffs
To benefit from reduced or zero tariffs under the FTA, UK exporters must ensure their goods meet the agreement’s rules of origin. These rules determine whether a product is considered to originate in the UK and therefore qualifies for preferential treatment.
There are 3 main ways a good can qualify as originating under the agreement – it is:
- wholly obtained or produced in the UK or India
- made entirely from originating materials sourced from the UK or India
- produced using non-originating materials but meets specific product-level rules known as product-specific rules (PSRs)
Rules of origin
To benefit from reduced or zero tariffs under the FTA, UK exporters must ensure their goods meet the agreement’s rules of origin. These rules determine whether a product is considered to originate in the UK and therefore qualifies for preferential treatment.
There are 3 main ways a good can qualify as originating under the agreement – it is:
- wholly obtained or produced in the UK or India
- made entirely from originating materials sourced from the UK or India
- produced using non-originating materials but meets specific product-level rules known as product-specific rules (PSRs)
Register with HM Revenue and Customs
Under the FTA a claim for preferential tariff treatment can be made by the importer on the basis of an origin declaration completed by a UK producer or exporter. To do so, a UK producer or exporter must be registered with HMRC prior to completing origin declarations.
Register to complete origin declarations under the UK-India Free Trade Agreement on GOV.UK.
If you have not registered with HMRC your origin declarations will be rejected and your importer will not be able to claim preference.
Registered UK exporters or producers must also provide a self-certificated origin declaration to Indian customs and the Indian importer before a claim for preference is made by the importer.
For detailed guidance, refer to the rules of origin guide which explains the criteria and provides sector-specific examples.
UK imports from India
UK importers may claim for preference on the basis of one of the following:
- a self-certified origin declaration
- a certificate of origin from an issuing authority in India
- ‘Importer’s knowledge’ if you have sufficient evidence – including documentation – to demonstrate that the good is originating. Importers relying on importer’s knowledge are responsible for substantiating their preference claim instead of the exporter or producer.
Accurate documentation is essential. Incorrect claims may result in delays, penalties, or loss of preferential treatment.
For detailed guidance, refer to our rules of origin guide, which explains the criteria and provides sector-specific examples.
Getting your products through customs
The FTA includes provisions to ensure non-discriminatory, transparent and consistent customs procedures. This will provide increased certainty and predictability to help UK exporters move goods across borders with greater ease.
To ensure smooth customs clearance in India, as a UK exporter you should:
- refer and familiarise yourself with India’s customs website. All key information for India’s customs laws, laws, regulations and procedures should be published on ICEGATE. ICEGATE is India’s national portal of the Central Board of Indirect Taxes and Customs that enables electronic filing of customs documents for import and export
- use digital customs platforms where possible to submit documents electronically and track shipments in real time
- prepare your customs documentation in advance, including commercial invoice, packing list, certificate or declaration of origin and any licences or permits for regulated goods
- consider applying for an advance ruling from Indian customs authorities if you are unsure of your goods tariff classification, origin or valuation. These rulings provide clarity and reduce the risk of disputes or unexpected charges at the border.
Businesses recognised as Authorised Economic Operators with India may benefit from faster clearance, reduced inspections, and priority treatment. Working with a dependable customs broker or freight forwarder who understands the Indian system can also help navigate local requirements and avoid delays.
Trade facilitation measures
Beyond tariffs and customs, the FTA includes broader trade facilitation commitments designed to reduce friction at the border and improve the overall trading environment. These include:
- Transparency: India will publish customs regulations and procedures online – this will ensure that UK businesses have access to up-to-date information
- Cooperation: both governments have agreed to work together to resolve customs issues and improve border efficiency. Where issues are identified by traders, we can work with India to resolve them.
- Transit and warehousing: simplified rules for goods in transit or temporary storage will support complex supply chains and reduce delays – for example, allowing the use of third-country distribution hubs as long as products remain under customs control.
These measures are particularly valuable for UK exporters operating in time-sensitive sectors or managing multi-country supply chains.
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access webinars on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate.
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures.
Check import duties and allows you to check the status of available tariff rate quotas.
Useful resources
Prior to export, you must be aware of local regulations and import conditions in India that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer, or distributor, you can use the following contacts:
Legal disclaimer
This document is provided as an information guide only and should not be relied on as a substitute for your own research or independent advice.
No investment and/or business decision should be made solely on the basis of information presented in this document. It is recommended that an independent due diligence investigation is conducted before entering into engagement with any individual, business or other organisation mentioned.
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