The Comprehensive Economic and Trade Agreement aims to improve market access for Indian exporters, strengthen bilateral commerce and create opportunities for businesses and workers in both countries
The India-UK Comprehensive Economic and Trade Agreement (CETA), which came into force on July 15, 2026, is expected to improve market access for Indian exporters, support employment and encourage investment as both countries work to translate tariff concessions into commercial gains.
The agreement provides zero-duty access to the UK for nearly 99 per cent of Indian export tariff lines, covering almost the entire value of India’s exports. Labour-intensive industries, including textiles, leather, footwear, marine products and gems and jewellery, are among the potential beneficiaries.
Lower import duties could help Indian products become more competitive in Britain, creating opportunities for manufacturers, smaller businesses and suppliers. However, actual gains will depend on export demand, product quality, pricing and compliance with the agreement’s rules of origin.
Services are another key component of the pact. CETA expands market access commitments across 137 services sub-sectors, including information technology, education, professional services and business services. Greater access could help Indian firms secure contracts from British clients and expand their international operations.
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The agreement may also support job creation if increased overseas demand prompts companies to raise production
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Export growth could benefit workers in manufacturing, food processing, engineering and logistics, although the scale of employment gains will depend on how businesses respond to new opportunities
The pact also provides for changes in the opposite direction, with India reducing or eliminating tariffs on selected British goods. Concessions cover products such as automobiles and whisky, with some reductions phased in over several years and others subject to quotas. Lower duties could improve market access for British producers, although the impact on Indian retail prices will depend on transport, distribution and other costs.
The agreement’s accompanying Double Contribution Convention is designed to prevent eligible workers temporarily employed across the two countries from paying social security contributions in both jurisdictions simultaneously for up to five years, subject to applicable conditions.
The focus has now shifted to implementation. On October 12, India and the UK announced more than £1 billion in new commercial deals at the first Joint Economic and Trade Committee meeting since CETA took effect. A British business delegation of around 200 companies has also visited India to explore opportunities in sectors including artificial intelligence, healthcare, automobiles and food.
The agreement’s longer-term success will depend on whether businesses convert improved market access into sustained exports, investment, commercial partnerships and employment.
