The India–United Kingdom Comprehensive Economic and Trade Agreement (CETA) officially came into force on 15 July 2026, bringing one of the biggest changes to bilateral trade between the two countries. The agreement immediately lowers tariffs across thousands of products, expands market access for businesses, and introduces new provisions for services and professional mobility.
The implementation follows the signing of the agreement in July 2025 and allows companies in both countries to begin using its trade benefits from today. According to official estimates, the agreement is expected to strengthen commercial ties while making it easier for businesses to trade across two major global markets.
Trade Barriers Ease
One of the most significant provisions taking effect today is the implementation of preferential tariffs. The UK has removed duties on 96.8% of its tariff lines, covering around 97.7% of the value of Indian exports. According to India’s Ministry of Commerce, nearly 99% of Indian exports by value now receive preferential access to the UK market.
India has simultaneously eliminated tariffs on 64.1% of tariff lines and will phase out another 21% under the agreement, while continuing to protect selected sensitive industries. Lower tariffs can improve price competitiveness while reducing trade costs for companies already exporting to the UK or preparing to enter the market.
Key Export Sectors Benefit
Several export-oriented industries are expected to benefit from the agreement from day one. These include textiles, apparel, leather, footwear, marine products, gems and jewellery, processed foods, and engineering goods, many of which previously faced UK import duties that reduced their competitiveness.
The agreement also creates wider opportunities for British businesses through phased tariff reductions in India. Financial services, insurance, education, professional services, and selected manufacturing sectors receive improved market access under the new framework, while safeguards remain in place for sensitive domestic industries.
New Business Opportunities
Alongside CETA, the Double Contribution Convention (DCC) also takes effect today. The arrangement exempts eligible temporary workers from paying social security contributions in both countries during qualifying assignments of up to five years.
The provision is expected to benefit around 75,000 Indian professionals and nearly 900 employers, helping companies reduce employment costs while making cross-border workforce deployment more efficient.
Another important provision expands access to government procurement. Indian companies can now participate in the UK’s government procurement market, estimated at around £90 billion, while UK businesses receive reciprocal access to India’s procurement market valued at approximately $114 billion. The agreement also expands market access across 137 service sub-sectors, including information technology, finance, telecommunications, education, and professional services.
Strengthening India–UK Business
The agreement is now in effect, and attention turns to implementation. Businesses that understand the new tariff structure, procurement opportunities, and services provisions will be better positioned to benefit from the agreement as commercial activity expands across both markets.
According to UK government estimates, the deal could increase bilateral trade by around £25.5 billion over the long term while contributing approximately £4.8 billion to the UK’s economy. More importantly, today’s implementation removes several long-standing trade barriers and provides businesses with immediate access to the benefits of one of the most comprehensive trade agreements signed between India and the United Kingdom.
