Landmark agreement to lower tariffs, expand market access and strengthen economic ties between India and the United Kingdom
India and the United Kingdom will bring their landmark Comprehensive Economic and Trade Agreement (CETA) into force on July 15, marking a significant step in strengthening bilateral trade and investment. The agreement is expected to improve market access for businesses in both countries while reducing tariffs on a wide range of goods.
Under the pact, nearly 99 per cent of Indian exports by value will receive duty-free access to the UK market, benefiting labour-intensive sectors such as textiles, apparel, footwear, gems and jewellery, engineering goods, marine products and processed food. Industry experts believe the agreement will enhance the competitiveness of Indian exporters and create fresh opportunities for small and medium-sized enterprises.
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For UK businesses, the agreement provides phased tariff reductions on products including premium cars, Scotch whisky and gin, alongside improved access to India’s government procurement market
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India has also introduced detailed rules governing quota-based tariff concessions for vehicle imports to ensure a transparent implementation process while safeguarding domestic manufacturing interests
The trade pact also includes provisions covering services, digital trade, intellectual property, customs procedures and rules of origin designed to prevent misuse of preferential tariff benefits. In addition, Indian professionals posted to the UK and their employers will benefit from an extended exemption from double social security contributions, reducing costs for businesses operating across both markets.
The agreement follows several years of negotiations and is regarded as one of India’s most comprehensive bilateral trade deals. While economists expect it to boost bilateral commerce and investment over the long term, some analysts have noted that exporters will also need to improve product quality, logistics and compliance standards to fully capitalise on the opportunities created by the pact.
