Customs duty from United Kingdom to India: Import Duty Guide

Key Takeaways

• The India-UK Comprehensive Economic and Trade Agreement (CETA) entered into force on 15 July 2026 - one of the newest trade agreements this site tracks.
• India removed or reduced tariffs on roughly 90% of tariff lines for UK goods: 64% immediately duty-free at entry into force, rising to 85% duty-free over a phase-in period.
• Scotch whisky is one of the most publicized elements of the deal - its tariff, previously as high as 150%, was cut substantially, with further reductions phased in over time.
• In the reverse direction, the UK eliminated tariffs on roughly 99% of tariff lines for Indian goods, including full duty-free access on textiles and clothing.
• Despite the UK’s political prominence, it ranks a relatively modest #19 among India’s import sources, at roughly $6.4 billion for a partial period in India’s 2026 fiscal year.

UK-India Trade at a Glance

Despite the prominence of the UK-India relationship politically, the UK is a comparatively modest source of India’s imports - ranking around #19 among India’s import sources, at roughly $6.4 billion for a partial period (through November 2025) in India’s 2026 fiscal year. Precious stones, machinery, electrical machinery, aluminium, and notably beverages and spirits (Scotch whisky in particular) dominate what the UK sells into India. Bilateral trade in both directions was worth roughly £48 billion in 2025, and is projected to grow by an additional £25.5 billion following CETA’s entry into force (Overseas Development Institute).

Is There a Trade Deal Between the UK and India? (Yes - And It’s Genuinely New)

Yes - the India-UK Comprehensive Economic and Trade Agreement (CETA), signed in July 2025 after 14 rounds of negotiation, entered into force on 15 July 2026 - only weeks before this page’s most recent review, confirmed by an official release from India’s Press Information Bureau and the UK’s own Trade Tariff Service (PIB; UK Trade Tariff Service). India removed or reduced tariffs on roughly 90% of tariff lines for UK goods: 64% became immediately duty-free at entry into force (covering roughly £1.9 billion of current UK exports to India), with coverage rising to 85% duty-free as the phase-in continues. A parallel Double Contributions Convention, covering social security contributions for workers moved between the two countries, took effect the same date.

The reverse direction is even more sweeping: the UK eliminated tariffs on roughly 99% of tariff lines for Indian goods, including full, immediate duty-free access on textiles and clothing across 1,143 separate tariff lines - a major win for one of India’s largest export industries.

The Whisky Story

One of the most publicized consumer-facing elements of CETA is its treatment of Scotch whisky - previously taxed at up to 150% on entry into India, among the highest effective rates on any consumer good in this site’s coverage. CETA cuts this substantially, with further reductions phased in over time, a change that’s drawn significant attention in both countries given how symbolically loaded whisky tariffs have been in UK-India trade discussions for years.

How Much Will You Pay Importing from the UK to India?

For UK-originating goods now covered by CETA’s roughly 90% tariff-line reduction, expect either 0% duty (for the 64% already immediately duty-free) or a reduced rate phasing toward 0% over time, depending on the specific product and its position in CETA’s schedule. For goods outside CETA’s current coverage, or during the phase-in period for partially-reduced categories, India’s standard stack still applies on top of whatever reduced base rate remains: a Social Welfare Surcharge equal to 10% of the BCD amount, and Integrated GST at 5-28% depending on category. India has no general duty-free threshold for commercial imports of any value.

Frequently Asked Questions

Is the India-UK trade deal actually in force yet?

Yes, as of 15 July 2026 - genuinely recent news, confirmed by official releases from both the Indian and UK governments. This is one of the newest agreements this site tracks.

How much of UK trade with India is now duty-free?

64% of tariff lines became immediately duty-free when CETA took effect, with coverage rising to roughly 85% over a phase-in period, and about 90% of tariff lines affected in total when partial reductions are included.

Is Scotch whisky really cheaper into India now?

The tariff has been cut substantially from its previous peak of up to 150%, with further reductions phased in over time - one of the most publicized specific outcomes of the agreement.

Why does the UK rank so low among India’s import sources despite CETA?

The UK ranks around #19 among India’s import sources by value, well below its political prominence might suggest - CETA is expected to grow this over time, but as of the most recent data available, the relationship remains comparatively modest in scale next to lanes like China, the UAE, or Russia.