UK vs EU: which route for selling machinery into India

A side-by-side comparison for machinery exporters choosing between the UK–India CETA (in force since 15 July 2026) and the EU–India FTA (concluded, not yet signed or in force) — duties, paperwork, and practical trade-offs.

6 min read · updated 2026-09-19

Two trade deals, two paths

A UK-based machinery exporter selling into India will use the UK–India CETA, which has been in force since 15 July 2026 (s1). An EU-based exporter will use the EU–India FTA — but only once it is in force: the agreement was concluded on 27 January 2026, and as of 19 September 2026 it has not been signed, with the Commission's proposal for signature before the Council of the EU (s2). Until then an EU-origin machine pays India's normal (MFN) duty. Both agreements aim to reduce or eliminate India's basic customs duty on industrial machinery, but they are separate agreements with their own schedules, staging timelines, and rules of origin. You cannot mix and match: the deal you use is set by the country your goods originate from, not where your sales office or distributor is based.

Comparing the duty outcomes

The comparison that matters is India's duty on a UK-origin machine against India's duty on an EU-origin one. For a UK-origin machine, CETA is in force, and India's schedule under it (Annex 2A, including Appendix 2A-a, published on GOV.UK — s1) sets the rate for the line, with some machinery tariff-free from day one and other lines staged. For an EU-origin machine, there is no agreement in force yet, so the applicable duty today is India's normal (MFN) rate; once the EU deal is in force, India's schedule under that agreement will set the preferential rate, line by line (s2). Do not compare the UK's and the EU's own import tariffs when pricing a sale into India: the UK Global Tariff lookup (s3) is useful for confirming a commodity code, and TARIC (s4) is the EU's own import tariff, but neither shows what India charges. Note also that the UK and EU schedules can place the same machine model in different staging categories, so a UK-origin and an EU-origin machine of the same model may face different Indian duties on the same day.

Which route is better — the practical answer

For most machinery exporters, the answer is not about picking the "better" deal — it is set by where your goods originate. A UK-manufactured machine can claim CETA today; an EU-manufactured machine can claim the EU–India FTA once that agreement is in force, and pays India's normal duty until then. The operational question is whether your supply chain can satisfy either agreement's rules of origin (see the separate article on HS codes and origin documentation for the practical steps). If you manufacture in both the UK and an EU member state, compare the specific staging timeline for your HS code under each agreement — one may phase in faster, but only the UK schedule is operative today. Also consider non-tariff factors: the UK deal includes mutual recognition of standards or conformity-assessment provisions that differ from the EU's proposals. The CETA text on GOV.UK (s1) and the EU's India trade page (s2) link to the full texts so you can compare the non-tariff chapters relevant to your product.

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