The recently concluded free trade agreement between India and the United Kingdom is unlikely to offer immediate gains for British exporters, with more than half of all tariff reductions delayed beyond 2030, a Moneycontrol analysis of over 12,000 product lines shows.
Of the product categories negotiated under the FTA, 57 percent will see tariff rates fall to zero only after 2030. Within this group, nearly two-thirds will wait as long as a decade before the tariffs are fully eliminated.
Key product categories where tariffs will go to zero only after 10 years include silver bars, taps and valves, cosmetics, and some medicines. Meanwhile, copper and certain iron products are among those that will see duties phased out over a five-year timeline.
The agreement was finalised on July 24 during Indian Prime Minister Narendra Modi’s two-day visit to the UK.
Describing the pact as a major win for consumers in both countries, the countries have committed to double bilateral trade to over $100 billion by 2030, while also retaining protections in sensitive sectors.
To that end, India has kept 14 percent of the UK’s $8.5 billion worth of exports in 2024–25 outside the purview of the trade deal, largely to shield domestic industries. An additional 11 percent of UK goods will see tariffs drop to zero over five years, while 8 percent will reach zero-duty status after seven years.
Products excluded from the agreement include agricultural goods such as milk, certain vegetables, and spices, as well as industrial and electronic inputs like aluminium scrap, ethernet switches, and completely knocked-down (CKD) car units.
At the other end of the spectrum, 23 percent of UK goods will enjoy immediate duty-free access to the Indian market. These include coking coal and iron and steel products, where Indian imports totalled $324 million in 2024–25, and processors and controllers, where the UK’s exports stood at $50 million.
A smaller portion of trade will follow partial reduction schedules. For instance, 3 percent of UK exports—primarily Scotch whisky and gin—will see tariffs decline to 75 percent in the first year, eventually reducing to 40 percent over a 10-year period. In 0.8 percent of trade, including items like cologne and essential oils, tariffs will be lowered to 50 percent within five years.
A study by the UK Department for Business and Trade found that bilateral trade between the countries is expected to grow by 25.5 billion pounds by 2040, with UK expected to witness a 15 billion pound bump in exports.
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