India Trade Agreements in 2026: Duty Benefits for Handicraft and Home Textile Importers

Sep 30

3 min read

Updated: Oct 9

Hand block printed bedsheet from India, a home textile covered by India trade agreements — Hand Block Printed Bed set

Import duty is a real part of your landed cost. Over the last few years, India trade agreements signed with several partners have cut or removed duties on handicrafts and home textiles. Here is where each one stands as of September 2026, with links to official sources.

United Kingdom: India-UK CETA

Signed: 24 July 2025 in London
In force: 15 July 2026 (PIB)
What it covers: about 99% of UK tariff lines are duty free for Indian goods, covering nearly all trade value, and textiles and clothing, which faced duties of up to 12%, move to zero (PIB note). For UK buyers of Indian home textiles and handmade goods this is the biggest duty change in years.
How to claim: the UK accepts an origin declaration, a certificate of origin or importer's knowledge. See the UK Trade Tariff notice and GOV.UK origin declaration guidance.
DCTS: India graduates from the UK's Developing Countries Trading Scheme on 15 July 2028. Until then importers can choose DCTS or CETA preference (GOV.UK).

Switzerland, Norway, Iceland and Liechtenstein: India-EFTA TEPA

In force: 1 October 2025 (EFTA)
What it covers: EFTA offers tariff concessions on 92.2% of its tariff lines, covering 99.6% of India's exports and 100% of non-agricultural products (PIB).

United Arab Emirates: India-UAE CEPA

In force: 1 May 2022
What it covers: the UAE removes duties on 97% of its tariff lines, equal to 99% of Indian exports by value, according to the Government of India CEPA FAQ. The agreement has been in force since May 2022 (PIB). For buyers in Dubai and the wider Gulf, this makes Indian home decor and textiles very competitive.

Australia: India-Australia ECTA

In force: 29 December 2022 (PIB)
What it covers: Australia committed to remove duties on all its tariff lines. The Commerce Minister announced that every line would be zero duty for Indian exports from 1 January 2026 (All India Radio).

European Union: concluded, not yet in force

India and the EU concluded negotiations on 27 January 2026. The European Commission has sent its proposal for signature to the Council, and the deal still needs signature, European Parliament consent and ratification (European Commission). Once in force, PIB says all textile and clothing lines will be duty free. Today home decor, wooden crafts and furniture from India face EU duties of up to 10.5% (PIB).

United States: no preference scheme, changing tariffs

India's GSP benefits in the US ended on 5 June 2019 (Federal Register). Additional US tariffs on Indian goods changed several times during 2025 and 2026, and a final trade deal was still under negotiation in late September 2026. Ask your broker for the rate that applies on your shipping date.

How to claim a lower duty under India trade agreements

Confirm your product's HS code with your broker.
Check the preferential rate for that code under the relevant agreement.
Ask your exporter for the right proof of origin. In India, preferential certificates are issued through the DGFT certificate of origin platform.
Keep the documents for audit.

Work with an exporter who knows the paperwork

Kraft Bharat ships handicrafts and home textiles from India with the origin documents your market needs. Browse our products and ask us for a quote that includes your preferred shipping terms.

This article is general information, not legal or customs advice. Checked on 30 September 2026.

Frequently asked questions

Is the India-UK trade agreement in force?

Yes. The India-UK CETA entered into force on 15 July 2026.

Is there a trade agreement between India and the EU?

Negotiations were concluded on 27 January 2026, but the agreement still needs signature and ratification before it applies.

How do I claim a lower duty on goods from India?

Use the correct HS code and ask your exporter for the right proof of origin, such as a preferential certificate of origin.