India and the UK concluded a free trade agreement in 2025, and an India-EU agreement has been under negotiation for some time. For a buyer of Indian textiles, either deal can lower the duty you pay, but only once it is in force, only on the lines it covers, and only when your shipment meets the agreement's rules of origin. The agreement itself does not change your invoice; the paperwork and the product's manufacturing route decide whether you get the benefit.
This article explains what a trade agreement changes in practical terms so you know what to ask your broker and your supplier. Rates and schedules are not quoted here because they depend on the final text, entry into force and your exact HS code, so confirm the position with your customs broker before you rely on it. None of this is legal advice.
What an agreement actually changes
- Tariff schedule: each side lists which HS lines move to a reduced or zero rate and whether that happens immediately or in annual steps. Some sensitive lines are excluded or phased over several years.
- Rules of origin: the agreement defines how much of the product must be made in India for it to count as Indian. Textiles typically use a process rule, such as requiring the fabric to be woven or knitted in India, or a value-added threshold.
- Proof of origin: instead of a chamber certificate, agreements usually rely on an origin declaration on the invoice by an approved exporter, or a specific certificate form. The wording and the exporter's registration both have to be right.
- Verification: customs on your side can ask the Indian authorities to verify an origin claim years after import. If it fails, the duty is recovered from you as the importer, not from the supplier.
- Entry into force and phase-in: a signed deal is not a live deal. Benefits start on the date it enters into force, and some lines reach their final rate only after a phase-in period.
How this differs from GSP and DCTS
Until an agreement is in force, Indian textiles entering the EU may qualify under the Generalised Scheme of Preferences on the lines that have not been graduated out, and goods entering the UK may qualify under the Developing Countries Trading Scheme. These are unilateral schemes that the importing side can change on its own. A free trade agreement is reciprocal and tends to be more stable, but its origin rules can be stricter or looser than the scheme it replaces, so a product that qualified under GSP will not automatically qualify under the agreement.
Where both routes exist for a period, your broker can choose the more favourable one for each entry. That choice depends on the rate, the origin rule and the proof you hold, so it is worth asking the question line by line rather than assuming the newest arrangement is the best.
What to ask your broker and supplier
- Is the agreement in force for my import date, and is my HS line covered or phased?
- Which origin rule applies to this product, and does the supplier's yarn and fabric sourcing satisfy it?
- What proof of origin is required, who issues it, and is the exporter registered or approved to issue it?
- Does the preferential claim need to be made at entry, or can it be claimed retrospectively if the proof arrives late?
- What records must I keep, and for how long, in case of a verification request?
How we help
We ask each supplier where the yarn and fabric come from, because that is what decides origin for most textile lines. Before the container leaves we check that the origin paperwork matches what your broker has asked for, and we send weekly updates during production. If you are unsure whether a product will qualify, a free 20-minute sourcing review is a good place to start.