New Delhi - Indian goods worth $960 million will lose their concessional duty access due to the UK’s new Developing Countries Trading Scheme (DCTS) that will supersede the previous preferential regime.

The goods include carpets, leather products, iron and steel commodities, aircraft parts, precious metals and chemicals.

That said, this exclusion may turn out to be temporary as both countries are in the process of finalising a Free Trade Agreement.

Due to their removal from the "Standard Preferences list," Indian products are no longer subject to preferential duty regulations. The government is pressing for lower access for textiles and leather goods under the Free Trade Agreement that India and the UK have been trying to work out.

India and the UK have been negotiating an FTA since January last year, with a goal towards a comprehensive pact that is expected to significantly enhance the bilateral trading relationship worth an estimated GBP 34 billion in 2022.