India-UK Free Trade Agreement

India has successfully secured substantial market access in key sectors, notably textiles, footwear, gems and jewellery, and marine products with the UK agreeing to eliminate duties as high as 20%.

Key Achievements

• India's food sector benefits with the elimination of duties on nearly 99.7% of tariff lines, where tariffs were previously up to 70%.
• Tariffs on marine and animal products, including seafood, dairy, and meat, have been reduced to zero from up to 20%.
• India permits British companies to participate in public procurement tenders and opens its automobile and alcoholic beverage markets.

UK Tariff Reductions

• Tariff cuts on aerospace (from 11% to 0%), automotives (from up to 110% to 10%), and electrical machinery (from 22% down).
• India allows duty cuts on UK-origin alcohol with a minimum import price threshold, reducing duties from 110% to 75% over 10 years.

Government Procurement and IPR

• India has granted UK firms Class Two status in government tenders, requiring 20-50% domestic value addition, marking a strategic shift from using public procurement for domestic industrial development.
• UK firms can use up to 80% inputs from third countries.
• India conceded on Intellectual Property Rights (IPR), allowing UK patent holders the preference for voluntary over compulsory licensing.