India-UK Trade Pact Takes Effect, Cutting Tariffs on 99% of Indian Exports
Updated
Updated · bbc.co.uk · Jul 14
India-UK Trade Pact Takes Effect, Cutting Tariffs on 99% of Indian Exports
3 articles · Updated · bbc.co.uk · Jul 14
Summary
The agreement came into force Wednesday, lowering or removing duties on 99% of Indian exports to Britain and 90% of UK goods entering India.
Welspun Living and other exporters expect the biggest near-term gains in textiles and garments, where India had faced 12% UK tariffs while rivals Bangladesh and Pakistan already shipped duty-free.
Scotch whisky is another early winner: India's import duty drops immediately to 75% from 150%, then falls to 40% over 10 years as importers prepare documentation and logistics to claim the new rates.
Trade experts say the overall effect may be gradual because much of India's $13.4 billion in UK exports already entered duty-free, while silver—over 45% of India's $11.7 billion UK imports—stays outside the pact.
The real test over the next one to three years is whether tariff cuts lift orders and margins despite obstacles including steel quotas, the UK's planned carbon border tax and India's historically low 20%-30% FTA usage.