India grants duty relief on UK pastries, pet food, cosmetics

India has extended significant tariff concessions to a range of British goods under the recently signed Comprehensive Economic and Trade Agreement (CETA), while strategically excluding sensitive sectors to protect domestic interests, officials said on Saturday.The free trade agreement, signed on July 24, will come into force in about a year after clearance from the British Parliament. The deal aims to deepen bilateral trade ties and provide duty-free or reduced-tariff access to nearly 90% of UK-origin goods, according to an analysis by think tank Global Trade Research Initiative (GTRI).
Under the pact, India will phase out or eliminate import duties on products such as pastries, cakes, protein concentrates, pet foods, cosmetics, soaps, detergents, and home appliances like air conditioners, washing machines, and microwave ovens. Tariff reductions are structured over different time frames to allow Indian industries to adjust to increased competition from UK exporters.
“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,” said GTRI Founder Ajay Srivastava.
Phased Tariff Cuts Across Key Categories
Chocolates, taxed at 33%, will become duty-free in seven years through annual cuts.
Pastries and cakes (33% duty) and protein concentrates (44% duty) will see tariffs scrapped over 10 years.
Pet food (dog and cat food) taxed at 22% will get zero-duty access in seven years.
Cosmetics (22%) and soaps (11%) will have duties removed over 10 years, while shaving creams, gels, and detergents will enjoy immediate duty elimination.
Home appliances: Duties on air conditioners and washing machines (22%) will phase out in 10 years, while microwave ovens become duty-free immediately.
Among industrial goods, waste paper (11%) will see duties phased out in a decade, while silver bars (10.75%) and palladium (11%) will also become duty-free over the same period. However, gold bars and aluminium scrap remain excluded from concessions.
In the aerospace and machinery segment, turbo-jets with thrust exceeding 25kN, taxed at 8.25%, will see tariffs eliminated within seven years.
Alcoholic Beverages See Partial Relief
The agreement also covers alcoholic beverages such as whisky, vodka, and gin, but only for bottles priced above $6 per 750ml. For these qualifying imports, tariffs will drop from 110% to 75% in the first year, and further to 40% by the tenth year.
Sensitive Sectors Excluded
India continues to impose steep duties of 110% on tea, coffee, and sausages, which remain outside the tariff relief ambit. These exclusions reflect India’s effort to shield domestic farmers and processors from foreign competition.While CETA is expected to open up new opportunities for UK exporters, India has balanced foreign market access with its domestic sensitivities, experts said.