The trade pact, which came into force on July 15, provides duty-free or preferential tariff treatment for a range of agricultural and processed food products, while also reducing or eliminating duties on automobiles and auto components exported from India.
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"The India-UK CETA is expected to improve market access through duty-free or preferential tariff treatment for a range of agricultural and processed food products, improving India's price competitiveness against non-FTA suppliers and supporting diversification beyond traditional export destinations," Anand Ramanathan, Partner & Consumer Industry Leader at Deloitte South Asia, told PTI.
India's agri-food exports, including processed food, stood at $49.43 billion in FY25 and accounted for around 11.2% of the country's total exports. Ramanathan said the agreement could help shift exports from commodity-led categories towards higher-value processed food products.
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Duties on auto components will also fall from around 2-4% to zero, improving the competitiveness of Indian manufacturers in the UK market.
On the import side, India has adopted a phased liberalisation approach, under which customs duties on eligible passenger vehicles will decline from as high as 110% to 10% over 15 years, subject to tariff rate quotas.
"This balanced framework is expected to encourage investment, technology transfer and deeper supply chain integration, while providing the domestic industry adequate time to enhance its competitiveness," Didwania told PTI, adding that internal combustion engine passenger cars are likely to benefit the most during the initial phase of the agreement.