New Delhi, July 15: The India-UK Comprehensive Economic and Trade Agreement (CETA) has come into effect as of Wednesday. This agreement opens the UK market to exporters in sectors such as textiles, leather, jewelry, precious stones, seafood, chemicals, and more, providing them with increased export opportunities.
Union Commerce and Industry Minister Piyush Goyal stated on social media platform ‘X’ that this agreement, achieved under Prime Minister Narendra Modi’s leadership, marks a significant milestone in bilateral relations between the two countries. Approximately 99% of India’s exports will now have zero-duty access to the UK, covering 100% of India’s trade value.
According to the minister, this trade agreement will create substantial export opportunities for textiles, leather, gems and jewelry, engineering goods, seafood, chemicals, processed foods, as well as for MSMEs, farmers, and other manufacturers.
He added that the agreement also paves new avenues for India’s IT, professional, financial, education, and business service sectors, while enhancing mobility opportunities for Indian talent.
Referring to the social security agreement, Goyal mentioned that it exempts Indian professionals temporarily working in the UK from dual social security contributions for up to five years, thereby enhancing the global competitiveness of the country’s workforce.
Furthermore, Goyal expressed gratitude to his UK counterpart Peter Kyle and the negotiating teams from both countries for their roles in finalizing the agreement.
Under this trade agreement, tariffs on several British products, such as Scotch whisky, gin, chocolate, biscuits, and cosmetics, will begin to decrease. However, reductions on many products will be phased in over the coming years.
This crucial trade agreement was signed on July 24, 2025, after 14 rounds of negotiations and includes 30 chapters covering trade in goods and services, digital trade, financial services, intellectual property, innovation, sustainability, and government procurement.
Under this agreement, India will reduce or eliminate tariffs on 90% of tariff lines, with 85% of these lines expected to become completely duty-free within the next decade.
The tariff on British Scotch whisky will initially be reduced from 150% to 75%, with plans to further decrease it to 40% over ten years. Meanwhile, duties on British automobiles will be gradually reduced under a quota-based system.
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