The India-UK Comprehensive Economic and Trade Agreement (CETA) officially entered into force on July 15, 2026, marking a significant milestone in the economic partnership between the two nations. On its first day of implementation, India exported over $140 million worth of goods to the United Kingdom under the new zero-duty regime. This landmark deal, signed in July 2025, aims to deepen trade ties and facilitate the movement of professionals, with both countries targeting $100 billion in bilateral trade by 2030.
Under the agreement, the UK has eliminated tariffs on nearly 99% of Indian exports, providing immediate relief and enhanced competitiveness for labor-intensive sectors such as textiles, leather, gems and jewelry, marine products, and processed foods. In return, India will gradually reduce tariffs on British goods, including automobiles and spirits, over the next decade. The deal also includes a Double Contribution Convention, which exempts eligible Indian professionals on temporary assignments in the UK from paying social security contributions in both countries, a move expected to save Indian companies approximately $600 million.
Beyond tariff reductions, the agreement covers 30 chapters addressing digital trade, government procurement, and small and medium enterprises. It also establishes frameworks to manage non-tariff barriers, ensuring that future regulatory differences do not impede trade. While the agreement opens new doors for Indian exporters, it also includes safeguards for sensitive domestic sectors, allowing for a phased approach to liberalization that gives Indian industries time to adjust to increased competition from British imports.