Overview
- The India‑UK Comprehensive Economic and Trade Agreement took effect on July 15 and removes or cuts tariffs to give Indian exporters wider and cheaper access to the UK market.
- For agriculture the pact grants duty‑free or preferential treatment for many fresh and processed foods and could shift exports from raw commodities toward higher‑value processed items; India’s agri‑food exports were about $49.43 billion in FY25 and annual post‑harvest losses are estimated at roughly ₹92,651 crore, highlighting the need for better cold‑chain capacity.
- The UK will cut most auto and component duties to zero, improving price competitiveness for Indian makers, while passenger vehicles including electric and hybrid models will enter under tariff rate quotas that limit volumes.
- India will protect its domestic auto industry with a phased 15‑year cut in duties on eligible passenger vehicles from as high as 110% to 10%, subject to the TRQs and quota administration rules that will shape how quickly imports rise.
- Experts say the deal should spur investment, technology transfer and tighter supply chains but outcomes hinge on exporters meeting UK standards, building cold storage and using digital traceability tools and on policy risks such as the UK carbon border rules to watch before 2027.