Polo horses, exotic animals kept out of India-UK free-trade pact

The India–UK Comprehensive Economic and Trade Agreement (CETA) has kept polo horses, mules, and other exotic livestock out of the duty concession list under the pact, according to documents. This means the existing 33% import duty stays.

By excluding these animals from the pact, India has shielded military and sporting institutions and domestic breeders, as well as prevented the trade in wildlife and luxury animals that could face ethical scrutiny, said trade analysts.

The exclusion list also covers animals used in remote logistics, such as mules and hinnies, the FTA documents showed. Hinnies and mules are widely used in India’s hilly terrains and logistics in remote areas, and the high duty is seen as a protective measure to support domestic breeders and avoid incentives for luxury or low-utility imports.

United Nations Comtrade data show that India purchased live horses, asses, mules and hinnies worth $9.19 million from the UK in 2024.

The list of excluded species also includes several marine and land mammals, such as whales, dolphins, porpoises, manatees and dugongs, seals, sea lions and walruses, as well as rabbits, hares, and reptiles, including turtles and snakes. Imports of turkeys, ducks, geese, and goat or sheep meat will also continue to face the 33% duty.

In contrast, India has agreed to gradually reduce import duties on some agricultural and livestock categories. The current 5.5% duty on bulls, cows, and goats will be halved over a period of 10 years, paving the way for greater imports of British livestock, which may benefit India’s dairy and meat processing industries in the long run.

British seafood to get cheaper 

Similarly, the agreement has slashed duties from 33% to zero on a wide range of British seafood and temperate fruits. Products such as Atlantic and Pacific bluefin tuna, hilsa (Tenualosa ilisha), swordfish, salmon, Norway lobsters, crabs, shrimps, and prawns will now enter India duty-free. 

The duty elimination is expected to improve sourcing options for India’s hotel, retail, and processing sectors, especially in metro markets where demand for imported temperate fruits and premium seafood is growing.

“It is expected to give greater access and lower prices to Indian products in the UK, while British goods such as shrimp, tuna, salmon, lobster, and whisky would enter India at reduced tariffs, helping premium hotels enhance their guest offerings and providing greater value and choice for tourists visiting the country,” said Aashish Gupta, consulting chief executive officer, Federation of Associations in Indian Tourism and Hospitality (FAITH).

The CETA is among the most wide-ranging deals ever concluded by India, and the most expansive trade pact signed by the UK in the Indo-Pacific after it left the European Union. The deal takes effect once both parliaments ratify it, which may take six months or more.

Both Prime Minister Narendra Modi and his UK counterpart Keir Starmer described the deal as a win for their nations.

Indian seafood traders expect the FTA to open up a new market for Indian seafood by offering a level-playing field with other exporting countries. This, they say, is particularly timely as the sector is currently facing headwinds in its largest market — the US.

Seafood exports to the UK were valued at around $100 million in the last fiscal, with frozen shrimp and prawns being the main export items, according to K.N. Raghavan, secretary general of the Seafood Export Association of India. “With the FTA in place, there is clear scope for growth, and we estimate that exports to the UK could rise to $180–200 million in the coming year.”

On the potential impact of duty-free access for British seafood, Raghavan said, “Not much. UK seafood does not have much of a market here.”

With the FTA now in place, nearly 99% of India’s agricultural exports will enter the UK market duty-free once it comes into force after six months or more. Although agriculture accounts for only around 6% of India’s total merchandise exports to the UK, the sector contributed $784.57 million in 2024–25 out of the total bilateral trade of $14.5 billion during the year. 

India’s merchandise exports to the UK rose 12.6% to $14.5 billion in 2024-25, while imports grew marginally by 2.3% to $8.6 billion. The total bilateral trade stood at $21.34 billion in 2023-24, up from $20.36 billion in the previous year.