The government expects the India-U.K. Comprehensive Economic and Trade Agreement (CETA) signed by the two countries on Thursday (July 24, 2025) to lead to substantial benefits for a variety of Indian export-oriented sectors such as agriculture, textiles, leather, chemicals, and engineering goods, according to officials aware of the calculations.
Under the deal, the U.K. will benefit from a 12-percentage point average tariff reduction from the current average of 15% to a new average of 3% — for items it exports to India. It will see a removal or reduction of tariffs on 90% of the tariff lines, covering 92% of the items currently exported from the U. K .to India.
Among the items that will find cheaper access to the India market from the U.K. are whiskey, items related to aerospace, automobiles and electrical machinery.
The economic and trade deal was signed in the UK by Union Commerce and Industry Minister Piyush Goyal and the U.K’. s Secretary of State for Business and Trade Jonathan Reynolds, in the presence of the Prime Ministers of both the countries.
“In agriculture, India exports $36.63 billion globally, while the UK imports $37.52 billion, but imports just $811 million from India, revealing room for growth in high value agri products,” a government official said. “Duty-free access is expected to increase agriculture exports by over 20% in the next three years.”
India has not provided the U.K access to its most sensitive sectors such as dairy products, apples, oats, and edible oils. These exclusions reflect India’s calibrated trade strategy—one that prioritises food security, domestic price stability, and vulnerable farming communities,” the official said.
