India Exports Over $140 Million Worth of Goods Duty-Free to UK on Day One of Trade Pact

India exported goods worth more than $140 million to the United Kingdom at zero customs duty on the very first day of the India–UK Free Trade Agreement (FTA), marking a significant milestone in bilateral trade between the two countries.

The landmark trade pact will provide duty-free access to almost 99% of Indian exports coming to the UK and will bring high value to Indian companies in a range of sectors. India will benefit from the deal, and will also benefit from access to foreign markets and better relations with one of its biggest trading partners.

Hence, industry experts believe the FTA will be an immediate boost to a number of labour-intensive industries like textiles and apparel, engineering goods, gems and jewellery, leather products, marine products, pharmaceuticals, and processed food. Because of the elimination of import duties, Indian exporters will be able to compete in the UK and thus could boost the demand for their products.

Government and industry estimates are that duty-free shipments on the first day alone have so far reached $140 million, and it is indicative of the acute interest of exporters in taking advantage of the new trade regime.

The agreement will be beneficial to tens of thousands of exporters (small and medium-sized enterprises (SMEs) in particular) and to UK consumers as well by lowering prices and expanding access to UK consumers. Lower tariffs could also help drive more investment, manufacturing, and job creation in export-oriented industries in India.

The India–UK trade pact is widely considered one of India’s most significant bilateral trade agreements in recent years. In addition to lowering tariffs, it aims to enhance cooperation in trade, investment, services, innovation, and supply chains as well as create new business in both countries.

For the UK, the agreement will bring access to one of the world’s fastest-growing major economies. For India, the preferential market access to the UK is likely to strengthen exports and support the government’s larger aim to broaden global trade.

The exporters’ support for the agreement has been appreciated because there will be fewer barriers to trade and Indian products will be able to compete more effectively against suppliers from other countries.

With nearly 99% of Indian exports now eligible for duty-free access under the pact, experts see bilateral trade between India and the UK to be a significant expansion in the future, with a great deal of growth in bilateral trade coming in the next few years as a result, and we’ll also have an even stronger economic partnership between India and the rest of the UK.