India and UK Enhance Trade Relations; Discuss Local Currency Transactions with Tanzania
India discusses boosting trade with UK, local currency trade settlement with Tanzania
The Economic TimesImage: The Economic Times
India and the UK are enhancing trade ties following the Comprehensive Economic and Trade Agreement (CETA) signed in July 2025, allowing 99% of Indian exports to enter the UK duty-free. Additionally, India and Tanzania are exploring local currency trade settlements to strengthen their economic relationship.
- 01India and the UK aim to boost trade under the CETA signed in July 2025.
- 0299% of Indian exports will enter the UK at zero duty.
- 03India and Tanzania are discussing local currency trade settlements.
- 04Bilateral trade between India and Tanzania reached $9.02 billion in FY26.
- 05Collaboration in various sectors, including shipbuilding and mining, is being explored.
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India and the UK are working to enhance their trade relationship, leveraging the Comprehensive Economic and Trade Agreement (CETA) signed on July 24, 2025. This agreement allows 99% of Indian exports to enter the UK market duty-free, while tariffs on British goods, such as cars and whisky, will be reduced in India. During a virtual meeting, Indian Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Peter Kyle discussed opportunities to strengthen trade ties, particularly in labour-intensive sectors like textiles and engineering goods.
Separately, India and Tanzania are exploring the possibility of settling trade transactions in local currencies to enhance their economic partnership. At a recent India-Tanzania Joint Trade Committee meeting held on April 29-30, discussions included promoting local currency trade, facilitating long-term business visas for Indian entrepreneurs, and strengthening collaboration in pharmaceuticals and education. Bilateral trade between India and Tanzania reached $9.02 billion in FY26, showing growth from $8.64 billion in FY25. The discussions also highlighted potential cooperation in mining, shipbuilding, and railway infrastructure.
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The agreements could lead to increased business opportunities for Indian exporters and businesses in both the UK and Tanzania, enhancing economic growth.
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