Cosmetics and medical instruments offer $3 billion opportunity to UK in India

UK has an opportunity in India's cosmetic imports

The India-UK Free Trade Agreement is expected to open a $3 billion opportunity for the UK as tariffs on gin, whiskey, cosmetics and medical instruments are eased.

The real market for the UK would lie in cosmetics and medical instruments, where it accounts for less than 3 percent of India’s overall imports.

The easing of tariffs on whiskey and gin is unlikely to make much of a dent, as the UK already accounts for over 80 percent of the market in products.

“Deal will slash Indian tariffs on key products such as whisky, cosmetics and medical devices, locking in reductions on 90% of tariff lines for UK exports to unleash opportunities for businesses across regions and nations of UK,” the UK said in a statement released on May 6.

Whisky and gin tariffs will be halved from 150 percent to 75 percent before reducing to 40 percent by year ten of the deal.

India’s total imports from the UK in these categories were $481 million or 13 percent of the total imports of $3.63 billion in 2024.

In the case of whiskies and gin, UK exported $338 million worth of product to India in 2024, but its cosmetic exports were just $11 million and medical devices were $50 million.

India’s total imports in the categories were $422 and $2.7 billion respectively.