Key Details
The India–UK Comprehensive Economic and Trade Agreement, which took effect on 15 July 2026, gives nearly 99% of Indian exports duty-free access to the UK, covering almost the entire value of bilateral trade. Haryana’s industrial profile places several of its major manufacturing and services clusters within the sectors expected to benefit.
Haryana Sector | Potential Opportunity |
|---|---|
Engineering and auto components | Improved price competitiveness for manufacturers in Gurugram–Manesar and Faridabad |
Textiles and home furnishings | Duty-free access for Panipat’s labour-intensive production cluster |
Agriculture and food processing | Wider market access for processed foods, spices, fruits, vegetables and grain-based products |
IT and professional services | UK commitments covering 137 services subsectors, relevant to Gurugram’s technology and business-services firms |
Skilled professionals | Facilitated entry procedures and exemption from UK social-security contributions for up to three years |
Products in the identified sectors previously faced UK tariffs ranging from 4% to 70%, according to the Haryana Government.
Manufacturing Clusters Could Gain from Lower Import Duties
The agreement removes an important price disadvantage for several Haryana industries. Engineering goods, fasteners, machinery and auto components can enter the UK without the earlier tariffs, strengthening their ability to compete with suppliers from countries already enjoying preferential access.
The first consignment of fasteners from Haryana to the UK under the agreement was dispatched on 15 July. This indicates that firms have begun using the new market access, but the press note provides no figures on the consignment’s value or expected increase in state exports.
For smaller manufacturers, tariff removal is only one part of export readiness. Product certification, consistent quality, packaging, documentation and reliable delivery will determine whether access converts into sustained orders.
Panipat’s Textile Industry Gains a New Market Opening
Duty-free access is particularly relevant to Panipat’s textiles and home-furnishing cluster. Lower landed prices can support exports of apparel, furnishings and other labour-intensive products while creating opportunities for MSMEs, artisans and women-led enterprises.
The effect on production and employment will depend on demand from UK buyers and firms’ ability to comply with technical, quality and sustainability requirements. The agreement creates the opening; it does not guarantee additional orders.
Agriculture Needs Export-Oriented Value Chains
The UK has provided duty-free access for almost all Indian agricultural exports, subject to exceptions for sensitive products. Haryana identifies opportunities in:
fruits and vegetables;
processed foods and spices;
grain-based value-added products; and
other agriculture-linked goods.
Farmers are unlikely to access the opportunity individually. Farmer Producer Organisations, processors and exporters will need to coordinate aggregation, grading, food-safety compliance, traceability, packaging and logistics.
The larger opportunity may therefore lie in expanding value-added food exports, rather than shipping unprocessed agricultural produce.
Gurugram’s Services Sector Could Benefit Beyond Goods Trade
The agreement provides UK market access across 137 services subsectors, including IT and IT-enabled services, business and professional services, finance, telecommunications and education.
This is relevant to Gurugram’s concentration of software firms, business-process companies, consultancies and engineering-services providers. Provisions facilitating entry for professionals may support project delivery in the UK, while the social-security exemption of up to three years can reduce the cost of temporary assignments for eligible Indian employees and their employers.
Market Access Must Be Converted into Firm-Level Use
The Haryana announcement identifies the sectors expected to benefit but does not provide state-level projections for exports, investment or employment. The agreement’s impact should therefore be evaluated through actual utilisation rather than tariff coverage alone.
Useful indicators would include:
the number of Haryana firms exporting to the UK;
the value and composition of exports using the agreement;
participation by MSMEs and first-time exporters;
rejection or compliance-failure rates; and
employment and investment generated in participating clusters.
What Does Duty-Free Access Mean?
Duty-free access means that eligible goods can enter the UK without the customs tariffs previously charged at the border. Exporters must still comply with applicable product standards, documentation and other conditions governing use of the trade agreement.
Policy Relevance
Cluster-specific export support is required. Panipat, Gurugram–Manesar and Faridabad need different assistance based on their products and export constraints.
MSMEs need help with compliance, not only awareness. Testing, certification, packaging and documentation support will determine whether smaller firms can use the agreement.
Food exports require coordinated value chains. FPOs, processors, laboratories and logistics providers must be connected to UK buyers and standards.
Services commitments should be translated for firms and professionals. Clear guidance is needed on eligible activities, entry procedures and the social-security exemption.
Utilisation should be publicly tracked. Haryana should measure exports actually receiving preferences rather than treating duty-free coverage as equivalent to realised gains.
Relevant Question for Policy Stakeholders: Can Haryana convert tariff removal into sustained participation by MSMEs, farmers and service providers rather than concentrating the benefits among established exporters?
Follow the Full Update Here: Haryana Government: India–UK Economic and Trade Agreement Opens New Opportunities for the State