The UK’s trade agreement with India has entered into force, giving British companies wider access to one of the world’s largest and fastest-growing emerging markets. The Comprehensive Economic and Trade Agreement, known as CETA, took effect on 15 July 2026 and introduces extensive tariff reductions, simpler customs procedures and new opportunities across goods and services.
Tariffs fall across key sectors
India will remove or reduce tariffs on 90 per cent of tariff lines, covering 92 per cent of existing goods imports from the UK based on 2022 trade. Around 64 per cent of tariff lines became eligible for duty-free treatment immediately.
British producers of aircraft parts, scientific instruments, food, cosmetics and machinery are among the expected beneficiaries. Indian duties on Scotch whisky have fallen from 150 per cent to 75 per cent and are scheduled to decline to 40 per cent over ten years. A quota will also allow eligible British cars to enter India with tariffs reduced from as much as 110 per cent to 10 per cent.
Indian exporters gain wider UK access
India has secured zero-duty access for approximately 99 per cent of its exports to the UK, covering nearly all current trade value. Textiles, leather goods, marine products, engineering equipment and processed food are expected to benefit.
Lower import costs could support British retailers and manufacturers that depend on Indian goods and components. However, increased access may also intensify competition for some UK producers. Indian exports will remain subject to British safety, environmental and product standards.
Services and mobility receive support
The agreement extends beyond physical goods to sectors including financial services, telecommunications, education, professional services and digital trade. This creates potential openings for British firms seeking to serve India’s expanding middle class and corporate sector, while supporting Indian technology and business-service companies operating in the UK.
A related social security agreement allows qualifying employees temporarily transferred between the two countries, and their employers, to avoid paying contributions in both systems. The exemption can apply for assignments lasting up to five years.
Economic gains remain projections
The UK Government estimates that the agreement could eventually increase bilateral trade by £25.5 billion a year. Its long-term modelling projects annual GDP gains of £4.8 billion for the UK and £5.1 billion for India.
These figures are forecasts rather than guaranteed outcomes. The final impact will depend on how quickly companies use the new arrangements, as well as currency movements, compliance costs, transport conditions and wider global demand.
A strategic emerging-market shift
The deal strengthens Britain’s effort to build deeper commercial relationships beyond its traditional markets following Brexit. India offers significant growth potential, but businesses will still need to navigate regional differences, regulation and infrastructure constraints.
For the UK, successful implementation could demonstrate how targeted agreements with major emerging economies can diversify exports and reduce dependence on slower-growing markets. For India, the pact provides broader access to British consumers, investment and specialist services while reinforcing its role in global trade.
Newshub Editorial in Europe – 25 July 2026
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