Industry leaders hail the pact as a catalyst for competitiveness, exports, and global brand building
The recently concluded India–UK Free Trade Agreement (FTA) is poised to open a new chapter for India’s fast-moving consumer goods (FMCG) and cosmetics industries, with sweeping tariff cuts and streamlined market access promising to reshape trade flows between the two countries.
According to the terms of the FTA, average tariffs on UK cosmetics entering India will fall sharply from about 15 per cent to approximately 3 per cent, with key items such as soaps, shaving creams, and nail polish becoming duty-free either immediately or in phased timelines. Perfumes and eau de cologne, which previously attracted duties of around 22 per cent, will see levies halved before eventual elimination. For Indian FMCG exports to the UK—historically facing import duties ranging from 4 per cent to 18 per cent—the deal makes about 99 per cent of tariff lines duty-free. This includes textiles, processed foods, leather goods, and cosmetics, significantly widening the scope for exports.
Driving competitiveness and innovation
Bala Sarda, Founder and CEO of Vahdam India, believes the reduced tariffs and simplified market access will be transformative.
“With reduced tariffs and simplified market access, it allows brands to become more competitive in a key global market like the UK, where consumer demand for high-quality, clean-label, and purpose-driven products is at an all-time high.
This enables us to expand our offerings at more accessible price points, while maintaining strong margins and reinvesting in innovation and sustainability. It improves operational efficiency across logistics and distribution, allowing us to scale faster and respond more dynamically to market trends.
This move positions India as a trusted source of premium wellness and lifestyle products, rooted in rich traditions and backed by global quality standards. This is an exciting time for the sector, and we see this as a powerful enabler in taking Brand India to more households across the UK.”
A Gateway For Ethical Beauty
For Shriti Malhotra, Executive Chairperson of Quest Retail, The Body Shop India, the pact represents more than just tariff reform. “The UK–India Free Trade Agreement is a significant milestone that aligns with our long-standing mission to make high-quality, ethical beauty more accessible to Indian consumers.
At The Body Shop India, we’ve already taken pioneering steps to ‘Make in India’ with India Inspired Ingredients like Lotus & Hibiscus, bringing new, much-loved ingredients for India.
Currently, 90 per cent of our portfolio is imported from the UK, and the FTA has the potential to further lower import duties on UK-made beauty products, which will directly benefit customers.
Importantly, it also opens up opportunities for Indian-made beauty innovations to reach a global stage, reinforcing India’s growing influence in sustainable, ethical cosmetics. This is more than a trade deal—it’s a shift towards taking more of India to the world.”
Global visibility for Indian brands
Sunil Agarwal, Co-founder & Chairman of Joy Personal Care (RSH Global), sees the agreement as a growth accelerator. “The India–UK Free Trade Agreement presents a significant opportunity for the FMCG and cosmetics sector. Reduced tariffs and streamlined access to the UK market will make it easier for Indian beauty and personal care brands to expand their footprint globally.
This development is likely to encourage greater exports, drive product innovation tailored to international consumers, and enhance the visibility of Indian-origin formulations in competitive global markets. It sets the stage for India to emerge as a key player in the global beauty and personal care ecosystem.”
Tariff shifts and partnerships
Dhiren Dhawal, Senior Analyst, Investment Research and Analytics, Aranca, notes that the deal reshapes bilateral opportunities, “The entry of more competitively priced UK products into India would not only benefit consumers but also create opportunities for domestic manufacturers to partner with foreign brands to upgrade product lines, tap into new design and quality benchmarks, and co-develop premium offerings.
This collaboration can help Indian firms preserve market share amid rising competition while benefiting from technology and knowledge transfer that strengthens local manufacturing capabilities. Conversely, for Indian FMCG exporters, the duty-free access to the UK market translates into broader geographic expansion and strong positioning in the rising competitiveness in the UK market. This cross-border partnership can foster innovation, raise production standards, and build more resilient supply chains.”
A platform for global ambitions
Anurag Mehrotra, Chairman of Fixderma, sees the deal as a catalyst for scaling up. “The India–UK FTA marks a pivotal step toward unlocking global growth for Indian FMCG and cosmetics brands. By reducing tariffs and simplifying market access, the agreement enhances the competitiveness of Made-in-India products in a mature and discerning market like the UK.
At Fixderma, with our strong focus on dermatologically-backed formulations and presence in over 30 countries, we see this as a strategic opportunity to deepen our footprint in the UK and build stronger engagement with consumers seeking clinically effective skincare solutions. This deal isn’t just a trade milestone—it’s a signal to scale global ambitions with greater confidence.”
With lower tariffs, duty-free access for the vast majority of goods, and enhanced prospects for collaboration, the India–UK FTA is set to energise both inbound and outbound trade in FMCG and cosmetics—paving the way for a more globally competitive, innovative, and brand-rich industry.
