The India-UK Free Trade Agreement (FTA), finalized on May 6, 2025, promises to revolutionize bilateral trade by eliminating tariffs on 99% of Indian exports to the UK, covering nearly 100% of trade value. This landmark deal, effective as of July 24, 2025, opens up vast opportunities across diverse sectors, including textiles, agriculture, toys, leather, ceramics, sports goods, gems and jewellery, rubber, and services. By enhancing market access and removing trade barriers, the FTA aims to boost exports, create jobs, and empower local artisans, farmers, and professionals state-wise. This article details the specific benefits for key products across Indian states.
1. Textile/Clothing
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Bhagalpur Silk (Bihar): Known for its lustrous texture and exquisite craftsmanship, Bhagalpur silk will find a thriving market in the UK. The FTA enhances export opportunities, significantly benefiting local artisans by increasing demand and income.
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Baluchari Sarees (West Bengal): Celebrated for their intricate woven motifs and rich cultural narratives, these sarees from Murshidabad and Bishnupur will access UK markets more easily. The duty elimination taps into global appreciation, securing better profits for skilled artisans.
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Bandhini (Gujarat): This traditional tie-dye textile art, with vibrant colors and intricate patterns, is set to gain recognition in the UK. Duty elimination will benefit artisans and rural communities, boosting their livelihoods.
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Surat (Gujarat): As the ‘Textile Capital of India,’ Surat’s vast array of fabrics—silk, cotton, and synthetics—will gain massive UK market access. This will showcase India’s craftsmanship, increase exports, and empower local artisans.
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Kanchipuram Sarees (Tamil Nadu): Renowned for luxurious silk and intricate zari work, these sarees will tap into global demand in the UK. The FTA empowers weavers and local communities with enhanced market reach.
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Tiruppur Knitwear (Tamil Nadu): Famed for high-quality cotton garments, Tiruppur knitwear will gain seamless UK market entry. This benefits skilled artisans and small-scale manufacturers, reinforcing its status as India’s knitwear hub.
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Pashmina Shawls (Jammu & Kashmir): Known for luxurious warmth and Kashmiri craftsmanship, Pashmina shawls will gain seamless UK access. This ensures higher earnings for artisans, connecting their handiwork to international buyers.
2. Agri Products
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Makhana (Bihar): Bihar’s high-quality fox nuts will gain greater UK market access, increasing exports and boosting local farmers’ income while promoting this nutritious superfood globally.
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Shahi Litchi (Bihar): Famed for their sweet juiciness, Bihar’s litchis will find eager UK buyers. The FTA boosts farmers’ incomes with better prices and global demand.
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Darjeeling Tea (West Bengal): Tariff elimination will boost exports of aromatic Darjeeling tea to the UK, increasing global demand and supporting local tea growers.
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Araku Coffee (Andhra Pradesh): This organic, high-altitude coffee will gain a larger UK market with duty elimination, boosting exports and supporting local farmers and communities.
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Turmeric (Andhra Pradesh, Tamil Nadu, Kerala): With tariff reductions, turmeric from these states will gain a greater UK market share, boosting exports and supporting local farmers.
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Basmati Rice (Punjab, Himachal Pradesh, Delhi, Uttarakhand, Uttar Pradesh, Jammu & Kashmir): The FTA will pave the way for fragrant Basmati rice to grace UK markets, boosting demand and ensuring higher profits for farmers.
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Kashmir Saffron (Jammu & Kashmir): Kashmir’s famous saffron will see a significant boost in UK markets, enhancing exports and supporting local producers.
3. Toys
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Natugram Dolls (West Bengal): Excellently crafted wooden dolls and toys from Natugram will gain duty-free access, boosting exports and promoting traditional craftsmanship while empowering local artisans.
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Sikki Grass Craft (Bihar): Intricately crafted Sikki grass toys will become more competitive in the UK, fostering global recognition, increasing exports, and supporting local artisans.
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Thanjavur Dolls (Tamil Nadu): Famous bobblehead dolls with traditional attire and folk motifs will delight UK markets. The FTA will preserve and promote this rich craftsmanship globally.
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Channapatna Toys & Dolls (Karnataka): Renowned for vibrant colors and natural dyes, these wooden toys will benefit from duty-free UK access, expanding globally while supporting local artisans.
4. Leather/Footwear
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Vellore Chappals (Tamil Nadu): Iconic handcrafted chappals from Vellore will gain easier UK market access, enhancing demand and supporting artisans’ livelihoods.
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Shantiniketan Leather (West Bengal): Renowned leather products will receive broader UK recognition, increasing exports and preserving cultural heritage while empowering artisans.
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Agra & Kanpur Leather (Uttar Pradesh): Exquisite leather goods from these cities will flow seamlessly into UK markets, boosting export volumes and profits while empowering local artisans.
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Kolhapuri Footwear (Maharashtra): With its GI tag, Kolhapuri footwear will see greater UK demand, boosting exports and supporting artisans while promoting Maharashtra’s craft heritage.
5. Ceramics
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Morbi Ceramics (Gujarat): Renowned for quality tiles and sanitaryware, Morbi’s ceramics will gain enhanced UK market access, boosting exports and profits with a multiplier effect on the economy.
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Bulandshahr’s Khurja Pottery (Uttar Pradesh): Hand-painted pottery from Bulandshahr will gain broader UK access with tariff concessions, promoting craftsmanship and increasing export opportunities.
6. Sports Goods
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Jalandhar (Punjab): As a major sports hub, Jalandhar’s manufacturers will benefit from zero-duty exports to the UK, boosting the region’s reputation and local manufacturing growth.
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Kashmir’s Premium Willow Bats (Jammu & Kashmir): These high-quality bats will gain duty-free UK access, expanding reach, creating jobs, and empowering Kashmiri producers.
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Meerut (Uttar Pradesh): Renowned for quality sports goods, Meerut will gain duty-free UK access, boosting production and export volumes while benefiting manufacturers and workers.
7. Gems & Jewellery
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Surat Diamonds (Gujarat): With 0% tariffs, Surat’s diamond cutting and polishing industry will gain greater UK market access, strengthening its global hub status.
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Jaipur’s Gemstone Jewelry (Rajasthan): Renowned gemstone jewelry and goldsmith craftsmanship will see increased UK demand, boosting exports and promoting artisanal skills.
8. Rubber
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Kerala: Accounting for 74% of India’s rubber output, Kerala will see increased export opportunities for natural rubber and processed products, boosting the state’s economy and plantations.
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Tripura: As the second-largest rubber producer, Tripura will boost rubber exports, increasing farmers’ income and driving rural development.
9. Services
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IT Boost (Tamil Nadu, Telangana, Maharashtra): Easing mobility clauses will facilitate smoother movement of skilled professionals, boosting IT hubs like Bengaluru, Hyderabad, and Pune. Enhanced visa provisions will drive revenue and global collaboration for IT firms.
The India-UK FTA, effective as of July 24, 2025, offers a transformative platform for India’s diverse industries, from textiles to services, with state-wise benefits enhancing exports, livelihoods, and cultural heritage. By leveraging duty-free access and improved market reach, this agreement promises sustained economic growth and empowerment across the nation.
