Duty-Free Access Under India-UK FTA Expected to Boost Foreign Investment in India
Duty-Free Access Under India-UK FTA Expected to Boost Foreign Investment in India The India-UK Comprehensive Economic and Trade Agreement (CETA) , officially signed on July 24, 2025 , is poised to significantly enhance foreign direct investment (FDI) inflows into India. One of the key provisions driving this trend is the duty-free access to the UK market for Indian-manufactured goods. The agreement features a dedicated chapter on ‘Rules of Origin’ , outlining clear criteria for which products qualify for the reduced or zero tariffs. To benefit from these preferential tariffs, products must meet the local sourcing requirements , meaning they must be manufactured or substantially processed within India . Trade experts and investment analysts believe this requirement will encourage global and domestic companies to expand their manufacturing operations in India , in order to access the UK market under favorable trade conditions. This is expected to result in a significant boost t...