The India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to bring more British brands to Indian consumers, expanding choices across beauty, wellness, fashion and food. However, shoppers should not expect steep price cuts immediately, as a weaker rupee and higher global logistics costs continue to keep import prices elevated.
According to The Times of India (TOI), while lower import duties under the trade pact are encouraging UK brands to enter India, industry executives say currency fluctuations and supply chain disruptions mean the full benefits may take time to reach consumers.
Why prices may not fall immediately
The India-UK CETA reduces tariffs on a range of British products, making imports more competitive over time.
However, executives told TOI that the Indian rupee has depreciated by around 12% against the British pound over the past year, increasing the cost of importing goods from the UK. As a result, many companies are unable to pass on the entire benefit of reduced duties to customers.
Industry experts say the agreement is likely to cushion consumers from further price increases rather than trigger immediate discounts across product categories.
British cosmetics brand Lush delays planned price hike
British cosmetics company Lush is among the first brands to respond to the new trade agreement.
According to TOI, Vishal Anand, Founder and CEO of Bilberry Brands, Lush's exclusive partner in India, said the company has paused a planned price increase that was originally prompted by currency depreciation.
He added that Lush will reduce prices in categories where tariff reductions are the most significant, including shower gels and soaps.
However, Anand noted that price reductions across every product line are not currently possible because the impact of the weaker rupee outweighs the savings from lower import duties in several categories.
He said consumers can expect more competitive pricing over the long term as tariffs continue to decline under the agreement.
UK brands see India as a growth market
The trade agreement has also accelerated interest among British brands looking to enter India.
According to TOI, Radhika Ghai, Founder and CEO of online beauty marketplace Kindlife, said conversations with UK companies have shifted significantly.
"The question from brands has changed. It used to be, 'Should we enter India?' Now it is, 'How do we scale in India the right way?'"
Kindlife is currently working with 12 British brands across skincare, body care and wellness that are expected to launch in India over the next two to three quarters.
Most of these brands are targeting products priced between Rs 700 and Rs 1,500, aiming at India's growing premium beauty market.
Global costs continue to pressure import prices
Apart from currency movements, companies are also dealing with higher logistics costs.
According to TOI, the conflict in West Asia has disrupted shipping routes and extended delivery timelines. Many importers have shifted from sea freight to air cargo, significantly increasing transportation expenses.
Ghai said lower tariffs improve margins, but currency volatility and supply chain costs mean consumers should not expect maximum retail prices (MRPs) to fall overnight.
Luxury watch brands may also expand in India
The India-UK trade deal is expected to create opportunities beyond the beauty sector.
Pranav Saboo, Managing Director and CEO of luxury watch retailer Ethos, told TOI that the agreement is likely to encourage more British watchmakers to consider the Indian market.
He said the reduced tariff barriers could help initiate discussions with smaller UK luxury watch brands that had previously stayed away from India.
Ben's Cookies plans retail expansion
British bakery chain Ben's Cookies is also looking to expand its footprint in India.
According to TOI, Sanskriti Gupta, spokesperson for Ben's Cookies India, said the company plans to open eight to ten new stores during the current financial year, reflecting growing confidence in the Indian market following the trade agreement.
Inputs from TOI
