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India's Trade Liberalisation And Maritime Financing: New Opportunities For EETA And UK Stakeholders

Author: Gaurav Shanker, Managing Partner And Yamini Mishra, Associate |

Article by Business Law Chamber

India’s recent trade policies and maritime incentives signal a new era of openness, particularly for stakeholders from the European Free Trade Association (EFTA) states and the United Kingdom (UK) eyeing opportunities in the Indian maritime sector. With free trade agreements now in place and the introduction of the INR 25,000-crore Maritime Development Fund (MDF) to finance long-term maritime growth, India is strategically aligning market access, incentives, and long-term finance in ways that meaningfully expand entry routes for global players.

FREE TRADE AGREEMENTS AS CATALYSTS FOR MARKET ACCESS

The India–UK Comprehensive Economic and Trade Agreement (CETA), signed in July 2025 after over three years of negotiations, marks a defining chapter in India’s trade diplomacy. The agreement establishes a modern and balanced framework covering goods, services, investment, mobility, and regulatory cooperation, positioning both economies for deeper long-term engagement.

KEY TAKEAWAYS INCLUDE:

  • Tariff elimination and export access: Nearly 99% of Indian goods exported to the UK will now enjoy zero tariffs, benefiting core sectors such as textiles, leather, gems and jewellery, pharmaceuticals, and engineering goods.
  • Automotive and industrial gains: Tariffs on Indian automotive exports, previously as high as 100%, will be reduced to 10%, improving competitiveness and market access.
  • Mobility and workforce facilitation: Indian professionals, including service providers and independent professionals, gain from simplified visa rules and a socialsecurity arrangement preventing double contributions for up to three years.
  • Reciprocal benefits for the UK: Around 90% of UK goods exported to India will see phased tariff reductions, with most becoming duty-free within ten years.

Building on this momentum, the India–EFTA Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024 and effective from October 1, 2025, represents India’s first comprehensive trade pact with four developed European economies, Iceland, Liechtenstein, Switzerland, and the maritime powerhouse Norway. The agreement aims to deepen trade and investment linkages while reinforcing cooperation in innovation and sustainability.

KEY TAKEAWAYS INCLUDE:

  • Tariff coverage: with EFTA offering concessions on over 92% of tariff lines (accounting for nearly 99% of India’s exports) and India extending benefits on approximately 83% of its tariff lines (covering over 95% of EFTA’s exports). Sensitive sectors such as dairy, soya, coal, and agriculture remain safeguarded under this structure, balancing liberalisation with domestic priorities.
  • Services and professional mobility: The TEPA enhances services trade through digital delivery, commercial presence, and Mutual Recognition Agreements (MRAs) in key fields like nursing, accountancy, and architecture.

Together, these trade agreements expand India’s global economic footprint, offering a transparent, rules-based framework that strengthens confidence for foreign investors.

THE MARITIME DEVELOPMENT FUND

Complementing India’s recent wave of trade liberalisation, the Government has introduced the MDF as a flagship financing mechanism to strengthen the country’s maritime infrastructure and logistics ecosystem. Announced under the Union Budget 2025–26, the MDF forms a key component of India’s Maritime India Vision 2030 and the Sagarmala Programme, both aimed at transforming India into a global maritime hub.

With a total corpus of INR 25,000 crore, the MDF is designed to provide long-term, affordable capital for maritime enterprises and infrastructure projects. It comprises:

  • An Investment Fund of INR 20,000 crore, allowing up to 49% government participation to crowd-in private and institutional investors; and
  • An Interest Incentivisation Fund of INR 5,000 crore, aimed at lowering borrowing costs for eligible entities in the sector.

The MDF aims to solve the sector’s biggest constraint, access to long-term, affordable finance. It will support investments in shipbuilding, ship-repair, port infrastructure, fleet modernisation, and coastal and inland waterway logistics. Indian shipyards and operators will gain financing support, making them stronger partners for international technology and service providers.

IMPLICATIONS FOR EFTA STATES AND UK

The convergence of trade liberalisation and sectoral financing creates a strategically aligned environment for foreign participation in India’s maritime economy. For EFTA states, particularly Norway, and for the UK, these developments open multiple entry points across the maritime value chain

  • Improved investment clarity and policy alignment: The combination of tariff liberalisation under the trade agreements and targeted financial incentives through the MDF significantly reduces regulatory and capital barriers. Investors from EFTA states and the UK can leverage India’s stable trade framework and dedicated financing mechanisms to structure joint ventures or long-term collaborations with Indian shipyards, port operators, and logistics providers.
  • Technology- and service-integration opportunities: With the trade agreements creating frameworks for services and mobility, UK and EFTA firms specialising in maritime advisory, clean-tech shipping, port logistics, and ship-yard services are wellpositioned.
  • Green transition and value-chain diversification: Sustainability chapters under both the trade agreements create new engagement tracks in low-emission shipping, renewable-powered port operations, and digitised logistics. These align with India’s broader net-zero commitments, making early entry commercially and reputationally advantageous for foreign stakeholders.
  • Logistics corridor advantages: With large-scale investments planned under the Sagarmala Programme and Maritime India Vision 2030, European entities have the opportunity to participate not merely as exporters but as strategic partners in infrastructure development, project finance, and long-term maritime services.

Together, these developments reflect a cohesive policy vision that integrates trade facilitation with infrastructure modernisation. For businesses from the UK and EFTA states, these reforms present a timely opportunity to engage with India’s maritime growth story through structured investments, strategic partnerships, and technology collaboration. As regulatory frameworks deepen and capital channels expand, India is steadily emerging as a pivotal maritime and logistics hub in the Indo-European corridor.

Disclaimer: The views in this article are author's point of view. This article is not intended to substitute legal advice. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information. For any further queries or follow up, please contact us at communication@businesslawchamber.com.