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India-UK FTA: Benefits for Indian Exporters
India-UK FTA benefits explained for sellers: what zero-duty tariffs mean, which consumer goods gain most, and how to start exporting to the UK.
September 14, 2026 | 15 min read
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The FTA between India and the UK, formally known as the Comprehensive Economic and Trade Agreement (CETA), clears duty on close to 99% of India's exports to the UK. The agreement came into force on 15 July 2026, bringing zero-duty rates into effect for qualifying Indian exports.1
For exporters who have priced UK import duty into their numbers for years, that shift changes what is worth selling, where to sell it, and how much profit stays in the business.
This guide explains what the new trade deal changes for Indian businesses, which categories gain the most, and how to start selling in the UK.
For exporters who have priced UK import duty into their numbers for years, that shift changes what is worth selling, where to sell it, and how much profit stays in the business.
This guide explains what the new trade deal changes for Indian businesses, which categories gain the most, and how to start selling in the UK.
Key takeaways:
● CETA (Comprehensive Economic and Trade Agreement) has been in effect since July 15, 2026, clearing duty on close to 99% of India's exports to the UK.
● The removal of the 12% duty ceiling on textiles and clothing, along with duty-free access for products such as tea, coffee and spices, gives Indian exporters a stronger advantage in the UK market.2
● Textiles and home textiles lead the gains, with zero duty now on 1,143 tariff lines, including bedding, towels, and cotton apparel.
● To claim the preferential tariff benefits under the FTA, exporters need a valid Certificate of Origin that confirms their goods meet the agreement’s rules of origin.3
● You can list directly on Amazon UK using your existing Indian business registration, IEC, and Goods and Services Tax (GST) details, with no separate UK company needed.
What is the India-UK FTA or CETA?
CETA, the Comprehensive Economic and Trade Agreement, is the treaty behind the India‑UK FTA, also known as the UK‑India Free Trade Agreement, giving Indian exporters lower UK import duties on eligible goods.
The agreement moved through four milestones:
1. Negotiations opened on January 13, 2022.
2. Talks closed on May 6, 2025, after 14 rounds.
3. The two governments signed the deal on July 24, 2025.
4. CETA entered into force on July 15, 2026.
When the agreement came into force, it removed import taxes on about 99% of India’s exports to the UK, so almost all trade between the two countries became tax-free.4 CETA also opens many services sub-sectors to Indian providers, but this guide covers the goods provisions that set the duty schedule and what a shipment costs to land in the UK.
The agreement moved through four milestones:
1. Negotiations opened on January 13, 2022.
2. Talks closed on May 6, 2025, after 14 rounds.
3. The two governments signed the deal on July 24, 2025.
4. CETA entered into force on July 15, 2026.
When the agreement came into force, it removed import taxes on about 99% of India’s exports to the UK, so almost all trade between the two countries became tax-free.4 CETA also opens many services sub-sectors to Indian providers, but this guide covers the goods provisions that set the duty schedule and what a shipment costs to land in the UK.
India-UK FTA tariffs: What changed for Indian exporters?
The India-UK FTA brings UK import duties down to zero across eligible product categories, with some of the biggest changes affecting home textiles, apparel, area rugs, leather and footwear, among others. Some key categories are listed below:
Sector
Pre-CETA UK duty ceiling
Under CETA
Area rugs
Up to 8%
Zero
Bedsheets
Up to 12%
Zero
Home textiles
Up to 12%
Zero
Leather and footwear
Up to 16%
Zero
Clothing and apparel
Up to 12%
Zero
Jewellery
Up to 4%
Zero
Together, these cuts remove duty across the sectors where Indian exporters compete hardest on price. These duty cuts can lower the cost of eligible Indian goods entering the UK, giving exporters more flexibility to compete on price or protect their margins.
The Department of Commerce has said that 1,143 textile tariff lines now have zero duty.5 These lines cover products like textiles, home textiles, carpets and handicrafts. For these products, the UK customs duty rate is now 0 percent.
A zero‑duty tariff means the UK does not charge import tax on that product. This lowers the landed cost for the seller.
A short list of categories remain outside the deal, including dairy products, cereals, millets, edible oils, oilseeds, apples, and several vegetable products.6
The Department of Commerce has said that 1,143 textile tariff lines now have zero duty.5 These lines cover products like textiles, home textiles, carpets and handicrafts. For these products, the UK customs duty rate is now 0 percent.
A zero‑duty tariff means the UK does not charge import tax on that product. This lowers the landed cost for the seller.
A short list of categories remain outside the deal, including dairy products, cereals, millets, edible oils, oilseeds, apples, and several vegetable products.6
Why the India-UK FTA matters for Indian exporters
The India-UK FTA gives eligible Indian exporters two immediate advantages: lower landed costs and greater pricing flexibility in the UK market. The UK was India's fifth-largest export market by value in 2025, accounting for 3.4% of India's exports.7 This gives Indian businesses room to expand sales as lower duties improve price competitiveness.
What will the FTA change for exporters?
The changes that the FTA will bring for exporters are listed below:
● Lower landed costs: Zero duty on eligible products reduces the cost of bringing Indian goods into the UK.
● More pricing flexibility: Exporters can pass some of the duty savings to buyers through lower prices or retain the savings as additional margin.
● More viable products: Goods that previously struggled to absorb UK import duties can become commercially viable to export.
● Greater room to compete: Lower costs can help Indian products compete with goods from other major exporting countries.
Why is the UK an important market?
UK’s strategic importance for India’s export market can be summed up in 5 points:
1. Higher demand for Indian products, especially handicrafts, textiles, essential oils, Ashwagandha, etc.
2. Existing trade routes that make it easier for Indian exporters to serve the UK market.
3. Familiarity with Indian brands and suppliers, helping businesses build customer trust.
4. Opportunities to deepen existing relationships with UK buyers and expand their customer base.
5. Scope to enter new product categories and test additional products in an established market.
This may also benefit exporters whose products were previously less price-competitive in the UK market because of higher import duties.
Key benefits of the India-UK FTA for exporters
The India-UK FTA benefits exporters most in three clear ways.
● Lower cost on top categories: Zero duty cuts the cost of shipping high‑demand consumer goods to the UK. This includes apparel, home textiles, rugs, wellness products and everyday grocery items.
● Newly viable categories: Products that previously faced UK duties of 8% to 12% could become more viable to export when those duties fall to zero. This is particularly relevant for larger home textiles, heavier rugs, and some grocery and wellness products, where the additional import duty could make the final selling price less competitive. With lower landed costs, exporters can price these products more competitively or retain more margin.
● Simplified customs for first‑time MSMEs (Micro, small and medium enterprises): Qualifying goods can enter at zero or reduced duty under the India–UK FTA, lowering landed costs for small exporters. The agreement also supports paperless trade and digital customs systems, reducing compliance costs and improving market access. MSMEs can benefit from duty-free access to 99% of Indian exports to the UK, including textiles, leather, jewellery, footwear, and food products, saving 4–16% in tariffs.8
Did you know?
CETA targets customs release within 48 hours for perishable shipments and supports paperless trade procedures.9
Need help with customs or compliance? Amazon's Service Provider Network (SPN) connects sellers with vetted service providers who can help manage these requirements.
Need help with customs or compliance? Amazon's Service Provider Network (SPN) connects sellers with vetted service providers who can help manage these requirements.
Which consumer goods categories benefit the most?
Textiles and home textiles, games and learning and technology products, coffee, and agriculture and food processing gain the most under CETA.
● Textiles, home textiles, and bath and bedding: Many textile and home textile products now enter the UK at 0% duty. This covers everyday items like women’s cotton dresses, shirts and blouses, terry cotton towels and kitchen linen, mattresses, cushions and bedding.
● Games, hobbies, learning and technology: India’s sports goods and toys sector is expected to benefit from duty-free access to the UK. The sector is projected to grow 15%, with exports of sports goods and eligible non-electronic toys expected to reach US$186.97 million by 2030. Duty-free access will improve price competitiveness against China and Vietnam, which lack similar UK trade deals.10
● Coffee: India currently sends only a small share of its plantation exports to the UK, accounting for 1.7% of coffee exports. The UK receives 5.6% of India's tea exports and 2.9% of its spice exports. CETA now gives Indian instant coffee duty-free access to the UK, which can make value-added coffee more competitive in the market.11
● Agriculture and food processing: Under CETA, the UK now gives zero-duty access across hundreds of lines in both sectors, from fresh grapes and preserved vegetables to sauces, nuts and bakery goods. Government estimates expect this wider duty-free list to lift India’s farm and processed food exports to the UK by more than 50% over the next three years.12
Each of these categories now competes in the UK on quality and price alone, without a customs bill to price around.
How can Indian businesses prepare to export to the UK?
Indian businesses can prepare by registering with the DGFT for an Importer Exporter Code (IEC) before shipping anything abroad. The application requires a Permanent Account Number (PAN), a business bank account, and a verifiable business address.
The person or business responsible for filing the GB (Great Britain) customs declaration must also have a GB EORI (Economic Operators Registration and Identification) number.13 You can apply for an EORI number online through HMRC, and most applications are approved immediately.
Origin matters as much as registration. Under CETA, goods qualify for preferential duty rates only if they are wholly obtained in the UK or India, or have undergone substantial transformation there. DGFT’s Trade Connect e-Platform also enables exporters to apply for Certificates of Origin electronically, making the process simpler and more streamlined.14
UK compliance and labelling also matter. Your products must meet UK product‑safety rules, use the right labels, and follow any category‑specific standards, whether you sell cosmetics, food, toys, or home textiles.
Keep these documents ready for every shipment:
The person or business responsible for filing the GB (Great Britain) customs declaration must also have a GB EORI (Economic Operators Registration and Identification) number.13 You can apply for an EORI number online through HMRC, and most applications are approved immediately.
Origin matters as much as registration. Under CETA, goods qualify for preferential duty rates only if they are wholly obtained in the UK or India, or have undergone substantial transformation there. DGFT’s Trade Connect e-Platform also enables exporters to apply for Certificates of Origin electronically, making the process simpler and more streamlined.14
UK compliance and labelling also matter. Your products must meet UK product‑safety rules, use the right labels, and follow any category‑specific standards, whether you sell cosmetics, food, toys, or home textiles.
Keep these documents ready for every shipment:
1. India side: IEC, shipping bill, and certificate of origin.
2. UK side: GB EORI number and a customs import declaration filed through HMRC's Customs Declaration Service (CDS).
Ready documents protect the duty savings in your margin instead of losing it to a customs delay.
Sell in the UK with Amazon Global Selling
Indian businesses can sell on Amazon UK using their existing business registration, Importer Exporter Code (IEC), and Goods and Services Tax (GST) details through Amazon Global Selling. A single selling account on Amazon Global Selling gives sellers access to eight other European countries. For guidance on how to ship from India to the UK, see Amazon's guide to shipping from India to the UK.
Conclusion
CETA has cleared duty on almost all of what Indian exporters send to the UK, from home textiles to instant coffee. What remains is registration and documentation: an IEC, the right shipping documents, and a UK storefront ready to receive the goods. Register now on Amazon Global Selling to start exporting to the UK.
Frequently Asked Questions
Is there a free trade agreement between India and the UK?
Yes. CETA, the Comprehensive Economic and Trade Agreement, is the free trade agreement between India and the UK, and it has been in effect since July 15, 2026.
When did the India-UK FTA or CETA come into effect?
CETA entered into force on July 15, 2026, after being signed on July 24, 2025, following negotiations that ran from January 2022 to May 2025.
What are the UK's import tariffs on Indian goods under the FTA?
The UK-India FTA provides zero-duty access on tariff lines covering textiles, home textiles, leather and footwear, engineering goods, auto components, processed foods and more.
Which Indian product categories gain the most under the India-UK FTA?
Textiles and home textiles gain the most, with zero duty now on 1,143 textile tariff lines covering products like bedding, towels, and cotton apparel. Sports goods, toys, and food-processing categories also see meaningful duty cuts.
Do Indian exporters need an IEC or other documents to export under the FTA?
Yes. An IEC from the DGFT is mandatory before any export from India, FTA or not, and UK-bound shipments also need a shipping bill and a certificate of origin for CETA's preferential duty.
What does "zero tariff" mean under the India-UK FTA?
Zero tariff means the UK charges no import duty on a covered product entering from India, which means the price you quote a UK buyer no longer has to build in a customs markup.
Do Indian sellers need a UK company to sell on Amazon UK?
No. You can sell on Amazon UK from India using your existing business registration, IEC, and GST details, without setting up a UK company.
Published on Sept 14, 2026.
Sources:
1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2274280
2. https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=154945®=48&lang=2
3. https://www.gov.uk/government/publications/uk-india-ceta-origin-declaration
4. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2274280; https://www.gov.uk/government/collections/uk-india-trade-deal
5. https://www.pib.gov.in/PressNoteDetails.aspx?id=159216&NoteId=159216&ModuleId=3®=%203&lang=1
6. https://webgate.ec.europa.eu/isdb_results/factsheets/country/details_india_en.pdf
7. https://www.business.gov.uk/campaign/alive-with-opportunity/the-uk-india-trade-deal/
8. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284878®=3&lang=1
9. https://www.business.gov.uk/campaign/alive-with-opportunity/the-uk-india-trade-deal/
10. https://www.business.gov.uk/campaign/alive-with-opportunity/the-uk-india-trade-deal/; https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284878
11. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284878
12. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284878
13. https://www.business.gov.uk/export-from-uk/markets/india/trade-agreement/rules-of-origin-in-india/
14. https://content.dgft.gov.in/Website/dgftprod/b6f82c21-f67b-4bcf-b94f-ddd08d98c4ef/trade%20notice%20(1).pdf
Sources:
1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2274280
2. https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=154945®=48&lang=2
3. https://www.gov.uk/government/publications/uk-india-ceta-origin-declaration
4. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2274280; https://www.gov.uk/government/collections/uk-india-trade-deal
5. https://www.pib.gov.in/PressNoteDetails.aspx?id=159216&NoteId=159216&ModuleId=3®=%203&lang=1
6. https://webgate.ec.europa.eu/isdb_results/factsheets/country/details_india_en.pdf
7. https://www.business.gov.uk/campaign/alive-with-opportunity/the-uk-india-trade-deal/
8. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284878®=3&lang=1
9. https://www.business.gov.uk/campaign/alive-with-opportunity/the-uk-india-trade-deal/
10. https://www.business.gov.uk/campaign/alive-with-opportunity/the-uk-india-trade-deal/; https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284878
11. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284878
12. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284878
13. https://www.business.gov.uk/export-from-uk/markets/india/trade-agreement/rules-of-origin-in-india/
14. https://content.dgft.gov.in/Website/dgftprod/b6f82c21-f67b-4bcf-b94f-ddd08d98c4ef/trade%20notice%20(1).pdf
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