The India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) came into force on July 15, 2026, marking a new phase in bilateral economic ties. Signed by Prime Minister Narendra Modi and UK counterpart Keir Starmer after nearly three years of negotiations, the pact eliminates or reduces tariffs on thousands of goods traded between the two nations.
What the India-UK FTA Covers
The agreement grants zero-duty access to 99% of India’s exports to the UK by value, benefiting sectors such as textiles, leather, gems and jewellery, marine products, and engineering goods. In return, India will gradually lower tariffs on British products, including Scotch whisky, gin, and luxury automobiles like Bentley and Rolls-Royce.
Beyond goods, the CETA addresses services, digital trade, investment, professional mobility, intellectual property, and government procurement. A parallel Social Security Agreement, or Double Contribution Convention, also took effect, providing relief to Indian professionals working temporarily in the UK.
Economic Impact and Next Steps
Business groups in both countries estimate the FTA could double bilateral trade from its current £48 billion annually by 2030. The pact is expected to boost investment, manufacturing, and job creation, while supporting greater mobility for skilled Indian talent in sectors like technology and innovation.
Prime Minister Modi described the implementation as a “significant moment” that deepens economic linkages and translates shared ambition into tangible opportunities. The agreement, he noted, strengthens cooperation in technology, professional services, and innovation while reinforcing trust between the two democracies.
