{"id":17626,"date":"2026-06-18T04:32:56","date_gmt":"2026-06-18T11:02:56","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=17626"},"modified":"2026-06-24T00:07:04","modified_gmt":"2026-06-24T06:37:04","slug":"india-uk-fta","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/india-uk-fta\/","title":{"rendered":"India-UK FTA to Start July 15, Deal Opens Duty-Free Access for Exports"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/india-uk-fta\/#What_Has_Been_Announced_About_the_India-UK_FTA\" >What Has Been Announced About the India-UK FTA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/india-uk-fta\/#Why_Is_the_India-UK_Trade_Corridor_in_Focus\" >Why Is the India-UK Trade Corridor in Focus?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/india-uk-fta\/#How_Has_Indias_Export_Basket_to_the_UK_Changed\" >How Has India&#8217;s Export Basket to the UK Changed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/india-uk-fta\/#Which_Indian_Exports_May_Benefit_From_Lower_UK_Tariffs\" >Which Indian Exports May Benefit From Lower UK Tariffs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/shoonya.com\/blog\/india-uk-fta\/#What_About_Steel_Exports\" >What About Steel Exports?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/shoonya.com\/blog\/india-uk-fta\/#What_Will_India_Import_From_the_UK_Under_Lower_Duties\" >What Will India Import From the UK Under Lower Duties?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/shoonya.com\/blog\/india-uk-fta\/#Final_Outlook_How_Can_the_FTA_Impact_India-UK_Trade\" >Final Outlook: How Can the FTA Impact India-UK Trade?<\/a><\/li><\/ul><\/nav><\/div>\n<nav style=\"--separator: &quot;\/&quot;\" class=\"wp-block-breadcrumbs\" aria-label=\"Breadcrumbs\"><ol><li><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/li><li><a href=\"https:\/\/shoonya.com\/blog\/latest-news\/\">News<\/a><\/li><li><span aria-current=\"page\">India-UK FTA to Start July 15, Deal Opens Duty-Free Access for Exports<\/span><\/li><\/ol><\/nav>\n\n\n<meta charset=\"UTF-8\">\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\n\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Bricolage+Grotesque:opsz,wght@12..96,400;12..96,600;12..96,700;12..96,800&amp;family=Figtree:ital,wght@0,300;0,400;0,500;0,600;1,400&amp;display=swap\" rel=\"stylesheet\">\n<style>\n  :root {\n    --forest:   #082F25;\n    --copper:   #EFA145;\n    --mint:     #6CE890;\n    --fresh:    #EEFFF2;\n    --bg:       #FAFAF8;\n    --surface:  #FFFFFF;\n    --text:     #1C2B24;\n    --muted:    #5A6B62;\n    --border:   #E2EDE6;\n    --amber-bg: #FEF7EC;\n    --red:      #C0392B;\n    --green:    #1A6B40;\n  }\n  * { box-sizing: border-box; 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gap: 10px; background: rgba(108,232,144,0.07); border: 1px solid rgba(108,232,144,0.15); border-left: 3px solid #6CE890; border-radius: 0 8px 8px 0; padding: 8px 12px; }\n  .banner-cta .b-icon { width: 26px; height: 26px; background: rgba(108,232,144,0.12); border-radius: 6px; display: flex; align-items: center; justify-content: center; flex-shrink: 0; font-size: 12px; }\n  .banner-cta .b-text { font-size: 12.5px; font-weight: 600; color: #EEFFF2; line-height: 1.3; }\n  .banner-cta .b-text strong { color: #6CE890; }\n  .banner-cta .b-btn { display: flex; align-items: center; justify-content: center; gap: 8px; background: #EFA145; color: #082F25; font-family: 'Bricolage Grotesque', sans-serif; font-size: 13px; font-weight: 800; padding: 12px 20px; border-radius: 10px; text-decoration: none; box-shadow: 0 3px 14px rgba(239,161,69,0.35); transition: opacity 0.15s; }\n  .banner-cta .b-btn:hover { opacity: 0.9; }\n  .banner-cta .b-disclaimer { position: absolute; bottom: 0; left: 0; right: 0; background: rgba(0,0,0,0.3); padding: 6px 20px; font-size: 9px; color: rgba(238,255,242,0.4); text-align: center; z-index: 10; }\n\n  @media (max-width: 640px) {\n    table { font-size: 13px; }\n    .banner-cta { flex-direction: column; }\n    .banner-cta .b-left { width: 100%; padding: 28px 24px 16px; }\n    .banner-cta .b-vdivider { width: 100%; height: 1px; margin: 0 24px; }\n    .banner-cta .b-right { padding: 16px 24px 40px; }\n  }\n<\/style>\n\n\n\n<div class=\"blog-wrap\">\n\n\n  <div class=\"prose\">\n\n    <p>The India-UK FTA will open a new phase in trade between the two countries by improving market access and reducing tariffs across major product categories.<\/p>\n    <p>The agreement may help revive trade relations that have gradually weakened as the UK&#8217;s share in India&#8217;s merchandise trade declined since 2009, while supporting Indian exports in sectors such as electronics, chemicals, textiles, leather, marine products, engineering goods, processed food, pharmaceuticals, and gems and jewellery.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_Has_Been_Announced_About_the_India-UK_FTA\"><\/span>What Has Been Announced About the India-UK FTA?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>India and the United Kingdom have confirmed <strong>July 15<\/strong> as the implementation date for the free trade agreement.<\/p>\n    <p>The announcement came after Prime Minister Narendra Modi and UK Prime Minister Keir Starmer met on the sidelines of the G7 Summit. Businesses will get around <strong>28 days to prepare<\/strong> before the agreement takes effect.<\/p>\n    <p>To claim tariff benefits under the agreement, businesses must register with the UK&#8217;s HM Revenue and Customs (HMRC).<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"Why_Is_the_India-UK_Trade_Corridor_in_Focus\"><\/span>Why Is the India-UK Trade Corridor in Focus?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>The UK&#8217;s share in India&#8217;s merchandise trade has declined over the years, even though trade between the two countries has continued in absolute terms.<\/p>\n    <p>In 2009, the UK accounted for <strong>2.4%<\/strong> of India&#8217;s total merchandise trade. By 2025, this share had fallen to <strong>2%<\/strong>.<\/p>\n    <p>India&#8217;s exports to the UK also slipped as a share of total exports, from <strong>3.7% in 2009 to 3.1% in 2025<\/strong>.<\/p>\n    <p>This shows that the UK has become a smaller part of India&#8217;s global trade basket as India expanded ties with other markets.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"How_Has_Indias_Export_Basket_to_the_UK_Changed\"><\/span>How Has India&#8217;s Export Basket to the UK Changed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>India&#8217;s export basket to the UK has changed over the past decade.<\/p>\n    <p>Textiles were once the largest category, but machinery and electronics now lead Indian exports. Chemicals have also gained share, while transport equipment has declined.<\/p>\n\n    <div class=\"table-wrap\">\n      <table>\n        <thead>\n          <tr>\n            <th>Export Category<\/th>\n            <th>Share in 2009<\/th>\n            <th>Share in 2024<\/th>\n          <\/tr>\n        <\/thead>\n        <tbody>\n          <tr><td>Machinery and electronics<\/td><td>10.2%<\/td><td>26.4%<\/td><\/tr>\n          <tr><td>Chemicals<\/td><td>8.5%<\/td><td>11.8%<\/td><\/tr>\n          <tr><td>Textiles<\/td><td>27.8%<\/td><td>14%<\/td><\/tr>\n          <tr><td>Transport equipment<\/td><td>Double-digit share<\/td><td>2.9%<\/td><\/tr>\n        <\/tbody>\n      <\/table>\n    <\/div>\n\n    <p>This shift shows India&#8217;s export base moving toward more manufacturing-led categories.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"Which_Indian_Exports_May_Benefit_From_Lower_UK_Tariffs\"><\/span>Which Indian Exports May Benefit From Lower UK Tariffs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>The agreement is expected to provide <strong>zero-duty access to around 99% of exports<\/strong>.<\/p>\n    <p>This can make Indian goods more competitive in the UK market, especially in sectors where duties were previously high. Key categories that may benefit include electronics, textiles and apparel, chemicals, pharmaceuticals, leather and footwear, marine products, engineering goods, auto components, processed food, toys, gems and jewellery.<\/p>\n    <p>The biggest impact may be seen in labour-intensive sectors:<\/p>\n\n    <div class=\"table-wrap\">\n      <table>\n        <thead>\n          <tr>\n            <th>Export Category<\/th>\n            <th>Earlier Duty \/ Tariff Impact<\/th>\n          <\/tr>\n        <\/thead>\n        <tbody>\n          <tr><td>Marine products<\/td><td>Up to 20% duty reduced to zero<\/td><\/tr>\n          <tr><td>Textiles and apparel<\/td><td>12% duty reduced to zero<\/td><\/tr>\n          <tr><td>Chemicals<\/td><td>8% duty reduced to zero<\/td><\/tr>\n          <tr><td>Base metals<\/td><td>10% duty reduced to zero<\/td><\/tr>\n          <tr><td>Leather and footwear<\/td><td>16% duty reduced to zero<\/td><\/tr>\n          <tr><td>Processed food products<\/td><td>Up to 70% duty reduced to zero<\/td><\/tr>\n        <\/tbody>\n      <\/table>\n    <\/div>\n\n    <p>Lower duties can improve market access, reduce landed costs for UK buyers, and create more room for export growth in sectors where India already has manufacturing strength.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_About_Steel_Exports\"><\/span>What About Steel Exports?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>Steel was one of the issues being watched before the implementation of the India-UK trade deal.<\/p>\n    <p>The government clarified that <strong>85% of India&#8217;s steel exports<\/strong> will remain outside the scope of Britain&#8217;s steel safeguard measures. This was addressed through country-specific quotas, residual quota allocations, and access under the Authorised Use Scheme.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_Will_India_Import_From_the_UK_Under_Lower_Duties\"><\/span>What Will India Import From the UK Under Lower Duties?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>India&#8217;s imports from the UK are concentrated in metals, machinery, and stone and glass products.<\/p>\n    <p>Other key UK exports to India include precious metals, electrical equipment, aerospace products, chemicals, medical devices, and Scotch whisky.<\/p>\n    <p>Under the agreement:<\/p>\n\n    <div class=\"example\">\n      <div class=\"example-label\">Key Import Duty Changes<\/div>\n      <div class=\"example-row highlight\"><span class=\"label\">Whisky tariffs \u2014 immediate reduction<\/span><span class=\"value\">150% \u2192 75%<\/span><\/div>\n      <div class=\"example-row\"><span class=\"label\">Whisky tariffs \u2014 over 10 years<\/span><span class=\"value\">Down to 40%<\/span><\/div>\n      <div class=\"example-row\"><span class=\"label\">Automobile duties \u2014 under quota system<\/span><span class=\"value\">Gradual decline to 10%<\/span><\/div>\n      <div class=\"example-row\"><span class=\"label\">Medical device tariffs<\/span><span class=\"value\">Eliminated or halved over 10 years<\/span><\/div>\n      <div class=\"example-row\"><span class=\"label\">Aerospace and electrical machinery<\/span><span class=\"value\">Lower duties<\/span><\/div>\n    <\/div>\n\n    <p>These changes may make select UK products more competitive in the Indian market.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"Final_Outlook_How_Can_the_FTA_Impact_India-UK_Trade\"><\/span>Final Outlook: How Can the FTA Impact India-UK Trade?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>The India-UK free trade agreement can support bilateral trade by improving market access for both countries.<\/p>\n    <p>For India, lower UK tariffs may support export growth in sectors such as electronics, textiles, leather, chemicals, engineering goods, processed food, and marine products.<\/p>\n    <p>For the UK, reduced duties in India may create opportunities in whisky, automobiles, aerospace, machinery, and medical devices.<\/p>\n    <p>India expects total bilateral trade with the UK to <strong>double from the current level to about $56 billion by 2030<\/strong>.<\/p>\n\n    <div class=\"source-tag\">\n      <svg width=\"13\" height=\"13\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><path d=\"M10 13a5 5 0 0 0 7.54.54l3-3a5 5 0 0 0-7.07-7.07l-1.72 1.71\"><\/path><path d=\"M14 11a5 5 0 0 0-7.54-.54l-3 3a5 5 0 0 0 7.07 7.07l1.71-1.71\"><\/path><\/svg>\n      <span>Source: <strong>Moneycontrol<\/strong><\/span>\n    <\/div>\n\n    <div class=\"disclaimer\">\n      <strong>Disclaimer:<\/strong> This content is for education and awareness purposes only and should not be considered investment advice or a recommendation. Investments in securities markets are subject to market risks. Read all the related documents carefully before investing.\n    <\/div>\n\n  <\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The India-UK FTA will open a new phase in trade between the two countries by improving market access and reducing tariffs across major product categories. The agreement may help revive trade relations that have gradually weakened as the UK&#8217;s share in India&#8217;s merchandise trade declined since 2009, while supporting Indian exports in sectors such as &hellip; <a href=\"https:\/\/shoonya.com\/blog\/india-uk-fta\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;India-UK FTA to Start July 15, Deal Opens Duty-Free Access for Exports&#8221;<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":17628,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[1082],"tags":[10143,10142,10137,10139,10138,10140,8136,10144,8139,10141],"class_list":["post-17626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","tag-chemical-exports","tag-electronics-exports","tag-fta-aims","tag-g7-summit","tag-india-exports-to-uk","tag-india-uk-bilateral-trade","tag-india-uk-free-trade-agreement","tag-india-uk-fta-impact","tag-india-uk-trade-deal","tag-uk-imports-from-india"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>India UK FTA to Give 99% Indian Exports Duty-Free Access<\/title>\n<meta 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