The agreement eliminates duties on 96.8% of UK tariff lines, expanding market access for Indian exporters and British services firms.
India and the UK implemented a comprehensive trade pact on Wednesday, slashing tariffs on thousands of goods and enhancing services trade access. The deal grants Indian exporters duty-free entry to most British tariff lines, benefiting sectors like textiles, leather, and gems, while the UK gains phased tariff cuts and quotas in automobiles, financial services, and education.
In the 2025/26 fiscal year, India exported $13.44 billion in goods to the UK and imported $11.68 billion. Bilateral services trade reached $35.44 billion in 2024, with India holding a $7.9 billion surplus. The UK will immediately remove duties on 96.8% of tariff lines, while India will eliminate duties on 64.1% and phase out others, excluding sensitive products.
Prime Minister Narendra Modi stated the pact would deepen economic ties and support farmers, entrepreneurs, and small businesses in India.