Pastries, pet food, alcohol: What will get cheaper after India-UK trade deal
The deal, which needs approval from UK parliament, is one of India’s most significant trade liberalization efforts. It is expected to come into force in a year.
India has granted phased tariff concessions to a broad spectrum of British goods under the newly signed Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom. The free trade agreement promises duty-free access to products ranging from cakes and pet food to cosmetics and home appliances, while strategically excluding sensitive sectors to safeguard domestic industries.
The deal, which still requires approval from the British Parliament and is expected to come into force in about a year, marks one of India’s most significant trade liberalization efforts in recent years. The Global Trade Research Initiative (GTRI) estimates that nearly 90% of goods originating from the UK will benefit from reduced or eliminated import tariffs under the agreement.
“The agreement includes phased concessions across a broad range of sectors - from chocolates and consumer appliances to industrial inputs - while strategically excluding sensitive items like tea, coffee, and gold,” GTRI founder Ajay Srivastava told news agency PTI.
Phased tariff reductions across sectors
Under CETA, tariffs on chocolates, currently facing a 33% duty, will be reduced to zero over seven years through equal annual cuts. Snack items such as pastries and cakes (33% duty) and protein concentrates (44% duty) will enjoy duty-free status over a 10-year period.
Pet food products — including dog and cat food — now taxed at 22%, will also see full tariff elimination within seven years. The processed food category, however, excludes high-duty items like sausages (110%) and continues to protect domestic producers.
In personal care and hygiene, India will phase out its 22% duty on cosmetics and 11% duty on soaps over a decade. Tariffs on shaving creams, gels, and detergents, all currently taxed at 11%, will be scrapped immediately upon implementation.
The home appliance segment will also see considerable liberalization. Duties of 22% on air conditioners and washing machines will be phased out over 10 years, while microwave ovens will become duty-free immediately.
Industrial and recyclable goods
India has adopted a tailored approach for industrial inputs and recyclable materials. Waste paper (11% duty) and silver bars (10.75%) will become duty-free over 10 years. Ferrous scrap, with a minimal 2.75% duty, will be exempted immediately, whereas brass scrap will follow a 10-year timeline. Aluminium scrap has been kept outside the ambit of the agreement.
High-tech imports like turbo-jets with thrust over 25 kilonewtons, currently taxed at 8.25%, will become duty-free in seven years — offering a boost to India’s aerospace and machinery sectors.
Alcoholic beverages and luxury goods
India has also agreed to lower its steep 110% import duty on certain UK alcoholic beverages, including whisky, gin, and vodka — but only for bottles priced above $6 per 750ml. For these imports, tariffs will drop to 75% in the first year and to 40% by the tenth year, providing a gradual path for market entry while protecting domestic manufacturers of cheaper liquor.
Strategic exclusions protect domestic interests
Despite wide-ranging concessions, India has firmly protected high-sensitivity sectors. Products like tea, coffee, sausages, and gold bars — which face import duties as high as 110% — are excluded from any tariff relief under CETA. “This reflects India’s careful balance between liberalizing trade and safeguarding its farmers and small-scale industries,” Srivastava told PTI.
