The India-UK Comprehensive Economic and Trade Agreement (CETA) will come into force on July 15, 2026, ushering in one of the most significant trade partnerships between the two countries. The agreement is expected to make a wide range of British products more affordable in India while giving Indian exporters unprecedented access to the UK market.
Under the agreement, tariffs on several British imports—including Scotch whisky, gin, chocolates, biscuits, cosmetics, medical devices, luxury cars, salmon, and aerospace components—will be reduced in phases, making these products more competitively priced for Indian consumers.
For India, the biggest gain is that 99% of its exports will receive zero-duty access to the UK. Key sectors expected to benefit include textiles and apparel, leather and footwear, gems and jewellery, engineering goods, marine products, food processing, and auto components, enhancing the competitiveness of Indian products in one of the world’s largest consumer markets.
The agreement is also expected to encourage greater investment, strengthen supply chains, create employment opportunities, and deepen economic cooperation between the two nations. Industry experts believe the FTA will particularly benefit export-oriented MSMEs by lowering trade costs and expanding market access.
With the agreement taking effect from July 15, businesses on both sides are preparing to leverage the new trade opportunities. The India-UK CETA is expected to significantly increase bilateral trade over the coming years while strengthening the strategic economic partnership between the two countries.
