From Wimbledon towels to Scotch: What India-UK trade deal could mean for shoppers
Summary
India and the UK have started a free trade agreement that lowers or removes taxes on most goods traded between the two countries. This deal aims to help Indian exporters, especially in textiles and garments, compete better in the UK market and also benefits British companies like Scotch whisky producers by reducing their taxes in India.Key Facts
- The India-UK free trade agreement (FTA) began on Wednesday.
- The deal cuts or removes tariffs on 99% of Indian exports to the UK and 90% of UK imports into India.
- Welspun Living, an Indian textile company, expects significant growth in exports to the UK after the deal.
- Indian textile exports faced a 12% tariff in the UK before, while competitors like Bangladesh and Pakistan had duty-free access through special schemes.
- The FTA lowers customs duties on Scotch whisky from 150% to 75% immediately and plans to reduce it to 40% over ten years.
- Businesses are currently preparing logistics, certifications, and customs processes to take advantage of the deal.
- Experts say the overall economic effect may be gradual rather than a big immediate change.
- In 2025-2026, India exported $13.4 billion to the UK, with over half already duty-free under previous rules.
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