India-UK CETA enters into force
Analysis based on 155 articles · First reported Jun 16, 2026 · Last updated Jul 31, 2026
The CETA is expected to significantly boost bilateral trade and investment between India and the UK, with projected gains of £25.5 billion in the long run. Indian exporters gain duty-free access to the UK market, enhancing competitiveness in sectors like textiles, pharmaceuticals, and engineering, while UK exporters benefit from reduced tariffs on whisky, cars, and other goods, potentially increasing market share in India.
The India-UK Comprehensive Economic and Trade Agreement (CETA) came into force on July 15, 2026, alongside the Double Contribution Convention (DCC). The agreement provides duty-free access for nearly 99% of Indian exports to the UK and reduces tariffs on many UK goods entering India, including Scotch whisky (from 150% to 75%) and premium cars (from over 110% to 10% under quotas). It expands services market access across 137 sub-sectors and opens government procurement markets. The DCC exempts eligible Indian professionals from UK social security contributions for up to five years. The pact is expected to boost bilateral trade by £25.5 billion and help double trade to $100 billion by 2030. Key sectors benefiting include textiles, leather, marine products, gems and jewellery, engineering, pharmaceuticals, and processed foods. The agreement was signed in July 2025 after 14 rounds of negotiations and resolved a dispute over UK steel safeguards. British officials hailed it as a 'new gold standard' for trade deals.
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