India’s marine, textile, and chemical sectors are set to gain significantly from the India–UK trade deal, which was officially signed on Thursday.
The agreement, finalised in May and signed today by Union Minister Piyush Goyal and his British counterpart Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, will eliminate tariffs on approximately 99% of UK tariff lines and nearly 100% of trade by value.
In return, India will progressively reduce duties on 90% of its tariff lines, with 85% of UK exports expected to become duty-free over the next decade.
The Indian government said in a statement that the deal would provide local farmers with preferential access to the UK’s $37.5 billion agriculture market. It also opens the $5.4 billion UK market to Indian marine exports, with UK import duties on marine products dropping to zero from up to 20%.
Other key sectors, including textiles, chemicals, and base metals, will also enjoy duty-free access to the UK market. Tariffs on textile and clothing exports will fall from 12% to zero, on chemicals from 8% to zero, and on base metals from 10% to zero.
The Double Contribution Convention (DCC)—a component of the trade deal—will exempt Indian workers and employers in the UK from paying social security contributions for up to three years, benefiting an estimated 75,000 Indian workers.
The deal also eases mobility for service professionals. “Up to 1,800 Indian chefs, yoga instructors, and classical musicians will be allowed to temporarily move to the UK to provide services,” the Indian government said.
Meanwhile, the UK government noted that the deal will reduce India’s average tariff on UK products from 15% to just 3%. This drop will benefit a wide range of British exports, including soft drinks, cosmetics, cars, medical devices, aerospace components, whisky, and gin.
A UK government statement highlighted that key manufacturing sectors would benefit from significant tariff cuts—such as aerospace (from up to 11% to 0%), automobiles (from up to 110% to 10% under a quota system), and electrical machinery (from up to 22% to either zero or a 50% reduction).
The agreement also marks a historic step in public procurement cooperation. For the first time, UK businesses will gain guaranteed access to India’s public procurement market—covering goods, services, and construction. They will be eligible to bid on approximately 40,000 tenders annually, valued at over £38 billion, according to the UK government.
Tariff cuts for several key UK exports will be phased in over time. Duties on whisky, for example, will fall from 150% to 40%, while car tariffs will reduce from 100% to 10% under a quota-based system.
Both governments hailed the agreement as a "landmark moment" in bilateral relations, with expectations that it will boost trade flows, generate employment, and foster innovation across multiple sectors. The deal now awaits ratification before it comes into effect.