New India-UK FTA to Boost Exports with Zero Duty Access

India and the UK have finished talks on a Free Trade Agreement (FTA) on May 6, bringing in new rules to help trade and stop unfair use of tariff benefits. A key change is the “coequal rule” under product origin rules. This means producers can now qualify for trade benefits by meeting any one of several conditions, such as fully making the goods in one country, adding a certain amount of value, or changing the product’s tariff code.

The new rule aims to match the needs of global trade chains and stop the dumping of low-quality goods. It also makes it harder for companies to misuse the system while giving honest exporters more freedom. Experts say this helps both India and the UK enjoy fair trade benefits.

Under the deal, 99% of India’s exports to the UK, including textiles, seafood, toys, and leather, will get zero duty. The UK will also remove tariffs on 90% of goods, with 85% becoming duty-free over ten years. The deal includes digital self-certification and checks for safety and fairness.