India–UK trade pact takes effect, opening tariff opportunities for Telangana exporters
Telangana’s export-oriented industries are expected to gain from the India–UK Comprehensive Economic and Trade Agreement, which removes or reduces duties on products including textiles, chemicals, machinery and leather. The State government says the pact could improve competitiveness, expand market access and encourage more small businesses to enter global supply chains.
The India–UK Comprehensive Economic and Trade Agreement (CETA) came into force on July 15, creating new tariff opportunities for Telangana’s export-oriented industries, according to the State government. The agreement is expected to improve market access, simplify customs procedures and strengthen regulatory cooperation. Telangana exported goods worth $402.5 million to the United Kingdom during 2025-26.
Its exports to the country include drug formulations and biologicals, electronic instruments, chemicals, electrical machinery, construction machinery and organic chemicals. The State’s Industries Department said several products had previously faced significant tariffs in the British market. Textiles attracted duties of up to 12%, leather products up to 16%, gems and jewellery up to 4%, chemicals between 4% and 8%, and machinery between 8% and 14%.
Under CETA, the duties on these products will become zero, the department said. It expects the resulting price advantage to make goods from Telangana more competitive and support higher exports to the UK. The sectors identified as likely beneficiaries include pharmaceuticals and life sciences, electronics and precision engineering, engineering goods, industrial machinery, and chemicals and specialty chemicals.
The agreement is also expected to encourage greater participation by micro, small and medium enterprises in global value chains. The State government said the pact could attract investment into export-oriented manufacturing and strengthen cooperation in pharmaceuticals, digital technologies, electronics and advanced manufacturing. It also linked the agreement to possible employment generation through export-led industrial growth.
Processed foods, rice, spices, fruits, essential oils and other value-added agricultural products currently account for a smaller share of Telangana’s exports to the UK. The department said these products could nevertheless have significant growth potential under the new arrangement. The State marked the agreement’s implementation by organising the flag-off of export consignments to the UK from the Inland Container Depot at Sanathnagar in Hyderabad.
The government said Telangana’s established industrial base positioned it to benefit substantially from the new trading conditions.
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