India is the UK's 12th largest source of imports, and that's growing fast. From textiles, clothing and pharmaceuticals to engineering components and leather goods — India has a competitive manufacturing base across a wide range of product categories. Crucially, under the UK's Developing Countries Trading Scheme, many Indian goods already attract reduced duty rates without needing a full trade deal.
Not yet — but negotiations are well advanced. The UK and India launched formal free trade agreement negotiations in January 2022. As of 2026, talks are ongoing across tariffs, services, investment and intellectual property. A comprehensive UK-India FTA would be one of the UK's most significant post-Brexit trade deals given India's scale and growth trajectory.
In the meantime, UK importers can access preferential duty rates for many Indian goods through the UK Developing Countries Trading Scheme (DCTS) — a unilateral preference scheme that the UK introduced in 2023 to replace the EU's GSP.
The Developing Countries Trading Scheme (DCTS) provides reduced import duty rates for goods from eligible developing countries. India qualifies under the Standard Preferences (SP) tier — the middle tier of the scheme.
Under DCTS Standard Preferences, India benefits from:
| Product category | MFN rate (no deal) | DCTS SP rate (India) |
|---|---|---|
| Knitted clothing (Chapter 61) | 12% | 9.6% (–20%) |
| Woven clothing (Chapter 62) | 12% | 9.6% (–20%) |
| Footwear (rubber/plastic) | 16.9% | 12% (–29%) |
| Leather goods / handbags | 3.7% | 0% (zero) |
| Carpets and rugs (Chapter 57) | 12% | 0% (zero) |
| Pharmaceuticals (Chapter 30) | 0% | 0% (already zero MFN) |
| Gems and jewellery | 2.5–4% | 0–2% (reduced) |
| Rice (milled) | varies | varies by type |
| Machinery and parts (Chapter 84) | 0–3.7% | 0% (often zero MFN already) |
| Spices (Chapter 9) | 0% | 0% |
These are indicative. The actual rate for your specific commodity code may differ — always check the HMRC Trade Tariff or use LandedHQ to confirm the exact DCTS rate for your product.
The strongest categories for UK imports from India in volume and value terms:
To claim the reduced duty rate under DCTS, you need valid proof of origin from your Indian supplier. There are two routes:
The main route for DCTS claims. Your Indian supplier must be registered under the REX system and provide a statement on origin on the commercial invoice or a separate document. The statement reads (in substance): "I, the undersigned, declare that the goods listed in this document originate in [India]."
For shipments below €6,000 (approximately £5,200), any exporter can make this declaration whether or not they're REX-registered. Above this threshold, the exporter must be REX-registered with Indian customs authorities.
An older route — still valid under DCTS — where a certificate of origin (Form A) is issued by Indian export authorities. Less common now that REX is the standard, but some suppliers still use it.
DCTS uses relatively flexible rules of origin compared to a bilateral FTA. For most manufactured goods, Indian origin is established through a "substantial transformation" test — typically a change in tariff heading at the 4-digit level.
For clothing, DCTS uses a "two-stage transformation" rule: fabric must be cut and sewn in India (though the fabric itself doesn't have to originate in India — unlike some bilateral FTAs). This is more lenient than the EU GSP clothing rule, making it easier for Indian garment manufacturers to qualify.
A full bilateral FTA would likely go further than DCTS in several ways:
For importers, a UK-India FTA would likely be most impactful on clothing, textiles and footwear — where current DCTS reductions are useful but not dramatic. Pharmaceuticals and machinery are already largely at 0% MFN so a deal would make less difference there.
No — they're on different tiers. Bangladesh is on Enhanced Preferences, which provides zero duty on essentially all goods. India is on Standard Preferences, which provides meaningful but more limited reductions. This is why Bangladesh is a very competitive sourcing location for garments specifically.
Yes, if you want to claim DCTS preference. Every shipment claiming a preferential rate needs a valid proof of origin — either a REX statement on the invoice (for REX-registered exporters) or a Form A certificate. Without it, you pay full MFN duty.
The FTA would replace or supersede DCTS for India. In practice, a well-negotiated FTA should offer equal or better rates than DCTS — so importers would be no worse off and likely better off. There would typically be a transition period when importers could use either route.
LandedHQ automatically applies DCTS preferential rates for eligible Indian goods. See your exact duty and landed cost in under 60 seconds.
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