The India-UK Comprehensive Economic and Trade Agreement (CETA), signed on July 24, 2025, during PM Narendra Modi’s meeting with UK PM Keir Starmer, is a game-changer for Non-Resident Indians (NRIs) in the UK. By slashing tariffs on 90% of British goods entering India and 99% of Indian exports to the UK, this landmark deal, detailed in our coverage of the Modi-Starmer meeting, makes products more affordable. Here’s what’s getting cheaper and how NRIs benefit.
Cheaper British Goods for NRIs Sending Gifts to India
The CETA reduces India’s import tariffs from an average of 15% to 3%, making British products more accessible for NRIs sending gifts home. Key items include:
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Whisky and Gin: Tariffs drop from 150% to 75% immediately, with a further cut to 40% in a decade, making premium Scotch and gin more affordable for gifting.
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Cars: Duties on British-made vehicles, like Jaguar and Land Rover, fall from over 100% to 10%, ideal for NRIs sending luxury cars to India.
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Medical Devices and Electronics: Aerospace equipment, electrical machinery, and healthcare devices see tariff cuts, lowering costs for NRIs importing high-quality tech for relatives or businesses in India.
Cheaper Indian Imports in the UK
NRIs running businesses or shopping in the UK will find Indian products more competitive:
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Textiles and Clothing: With UK tariffs eliminated (previously up to 12%), Indian sarees, kurtas, and handicrafts from regions like Kanchipuram or Jaipur become cheaper in UK stores, boosting NRI-owned retail businesses.
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Food and Spices: Indian staples like turmeric, cardamom, and mango pulp face zero duties, reducing prices in UK supermarkets.
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Jewellery and Leather: Tariff-free access for Indian gems, jewellery, and Kolhapuri chappals makes these cultural items more affordable, appealing to NRIs hosting cultural events.
Opportunities for NRIs
The tariff reductions create a ripple effect. NRIs in retail, catering, or import businesses can stock Indian goods at lower costs, attracting both diaspora and UK customers. The deal’s visa concessions also ease mobility for NRI professionals, with exemptions from UK national insurance contributions for up to three years, saving money for those working temporarily in the UK.
The Catch
While the deal, formalized at Chequers, awaits parliamentary ratification by mid-2026, benefits may take time to kick in. NRIs should monitor updates to plan purchases or business expansions.
Conclusion
The India-UK CETA makes gifting to India and sourcing Indian products in the UK more affordable, empowering NRIs economically and culturally. Stay tuned to nrinewsclub.com, join our WhatsApp channel, and follow @nrinewsclub on X and Instagram for the latest updates!
Sources: tribuneindia.com, timesofindia.indiatimes.com, pib.gov.in
