The India–UK Comprehensive Economic and Trade Agreement (CETA) came into force on 15 July 2026. A key feature is that about 99% of Indian exports to the UK (by value) now receive duty-free access, making it one of India’s most significant trade agreements.
Important points
- 99% duty-free access for Indian exports to the UK
- Nearly all Indian exports can now enter the UK without import duty.
- This improves the competitiveness of Indian products in the UK market.
- Major sectors expected to benefit
- Textiles and garments
- Leather and footwear
- Gems and jewelry
- Engineering goods and auto components
- Marine products
- Food processing, spices and agricultural products
- Pharmaceuticals and chemicals
- Benefits for Indian exporters
- Lower costs due to zero tariffs.
- Better price competitiveness against exporters from countries such as Bangladesh and Vietnam.
- Potential increase in exports, production and employment.
- What India is offering the UK
- India is reducing import duties on many UK goods in phases.
- Examples include premium cars, Scotch whisky, gin, chocolates, clothing and some other manufactured products.
- Some sensitive products remain protected and are not fully liberalized.
- Automobile imports
- UK-made vehicles receive tariff concessions under a quota system with specified eligibility rules rather than unlimited duty-free access.
- Services and professionals
- The agreement improves market access for Indian IT companies and professionals and includes measures to reduce non-tariff barriers and simplify business.
- Government procurement
- UK firms gain access to bid for certain Indian government procurement opportunities under agreed conditions.
