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.