India-UK CETA to boost exports across sectors, but compliance and innovation key: Grant Thornton

In agri-food, India gets duty-free access to the UK for fruits, vegetables, cereals, turmeric, pepper, cardamom, and processed foods (mango pulp, pickles, pulses). Over 95% of agri and processed food tariff lines now attract zero duty. This is expected to boost agricultural exports by over 20% in three years, supporting India’s USD 100 billion agricultural exports target by 2030.

In the auto sector, Indian auto components previously faced tariffs as high as 10% in the UK. With CETA’s provisions, these have now been eliminated, creating duty-free access that enhances the competitiveness of Indian manufacturers and opens up new avenues in one of the world’s most sophisticated automotive markets.

In pharma, zero-tariff access makes Indian generics more competitive; medical devices (e.g., surgical, diagnostic equipment) will also be duty-free, reducing costs for med-tech firms. Chemicals exports to the UK could rise by 30–40%, with plastics projected to grow by 15%, reaching a 2030 target of $186.97 million.

For services, the agreement provides guarantees for UK services sectors, including telecoms, construction, IT/ITeS, financial, legal, business consulting, architecture, and engineering, across India’s growing economy (UK services exports exceed £500 billion worldwide). In mobility and professional movement, the agreement allows easier, streamlined pathways for business visitors, intra-corporate transferees, contractual service suppliers, and independent professionals (e.g., architects, chefs, musicians, yoga instructors).

In the area of digital trade and intellectual property, the FTA allows secure cross-border data flows, robust data protection, recognition of digital signatures, electronic contracts, and anti-spam measures. Both nations have also agreed to strive for high environmental standards, support the transition to net-zero emissions by 2050, and foster trade in environmental goods and services.

For MSMEs, dedicated SME contact points, simplified customs, and regulatory support will lower fixed costs and facilitate Indian and UK SME’s entry into each other’s markets, says the GT report.