India-UK trade pact to boost agri, auto exports with lower tariffs, better market access: Experts

The India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to strengthen India's agricultural and automotive exports by improving market access, lowering tariffs and enhancing the competitiveness of Indian products in the UK, according to industry experts.

The trade pact, which came into force on July 15, provides duty-free or preferential tariff treatment for a range of agricultural and processed food products, while also reducing or eliminating duties on automobiles and auto components exported from India.

Also Read: India-UK trade deal: More British brands are coming to India, but here's why your shopping bill may not fall anytime soon


"The India-UK CETA is expected to improve market access through duty-free or preferential tariff treatment for a range of agricultural and processed food products, improving India's price competitiveness against non-FTA suppliers and supporting diversification beyond traditional export destinations," Anand Ramanathan, Partner & Consumer Industry Leader at Deloitte South Asia, told PTI.

India's agri-food exports, including processed food, stood at $49.43 billion in FY25 and accounted for around 11.2% of the country's total exports. Ramanathan said the agreement could help shift exports from commodity-led categories towards higher-value processed food products.

He added that the pact is also likely to accelerate the adoption of digital technologies across agriculture supply chains, as export competitiveness increasingly depends on traceability, quality assurance and reliable delivery rather than tariffs alone.

According to Deloitte, India incurs annual post-harvest losses of about ₹92,651 crore due to gaps in cold-chain infrastructure such as pack houses, refrigerated transport, ripening chambers and farm-gate pre-cooling facilities. Technologies such as blockchain and IoT can help improve traceability, reduce wastage and strengthen compliance with international standards, Ramanathan told PTI.

The agreement is also expected to benefit India's automotive sector. Gulzar Didwania, Partner and Indirect Tax & India Global Trade Advisory Leader at Deloitte India, told PTI that UK tariffs on Indian automobiles will be eliminated from up to 18% to zero, except for passenger vehicles, including electric and hybrid models, which will remain subject to tariff rate quotas.

Also Read: UK-India trade pact 'gold standard' and powerful message for rules-based order: UK envoy Lindy Cameron

Duties on auto components will also fall from around 2-4% to zero, improving the competitiveness of Indian manufacturers in the UK market.

On the import side, India has adopted a phased liberalisation approach, under which customs duties on eligible passenger vehicles will decline from as high as 110% to 10% over 15 years, subject to tariff rate quotas.

"This balanced framework is expected to encourage investment, technology transfer and deeper supply chain integration, while providing the domestic industry adequate time to enhance its competitiveness," Didwania told PTI, adding that internal combustion engine passenger cars are likely to benefit the most during the initial phase of the agreement.