The comprehensive economic and trade agreement (CETA) that was signed between India and the UK on July 25, 2025, after several rounds of negotiations will come into effect from Wednesday.
Addressing the media in new Delhi, Commerce Secretary Rajesh Agarwal said the CETA was India’s “most aspirational” trade deal till date and it established a future-focused economic framework between two major nations.
The agreement covers 30 chapters that include trade in products and services, digital trade, government procurement, MSMEs, innovation, labour, environment and gender.
“We call it a gold-standard and first-of-its-kind FTA because of its wide sectoral coverage and deep reduction in both tariff and non-tariff barriers,” said Agarwal. He said the UK had proposed tariff liberalisation on 98.8 per cent of tariff lines, which covered 99.5 per cent of the value of Indian exports. Of this, 0.5 per cent of trade value had not been subject to tariff liberalisation, while 97.7 per cent of trade value would be fully duty-free.
With immediate tariff removal on 30.3 per cent of trade value, India’s offer covers 89.5 percent of tariff lines and 89.4 percent of trade value. The remaining tariff reductions will be phased in over time.
Electrical machinery ($2.13 billion), textiles and apparel ($1.94 billion), mechanical machinery ($1.34 billion), gems and jewellery ($1.03 billion), plastics and rubber ($0.57 billion), organic chemicals ($0.56 billion), iron and steel ($0.44 billion) and pharmaceutical products ($0.41 billion) are some of India’s top exports to the UK.
According to Agarwal, eligible Indian professionals and their employers will not be required to make social security contributions in the UK while on qualifying temporary assignments according to the Double Contribution Convention (DCC).
Furthermore, over 75,000 Indian workers and over 900 firms are anticipated to gain from the policy, as per the Commerce Ministry. Self-certification of origin is another feature of the trade pact.
Agarwal noted the agreement offers greater mobility commitments for professionals as well as measures for farmers, fishermen, laborers, women entrepreneurs, youth, startups and MSMEs.
The Commerce Ministry estimates that bilateral goods trade reached $25.12 billion in FY26, with $11.68 billion in imports and $13.44 billion in exports from India. In 2024, bilateral services trade totaled $35.44 billion, with $21.66 billion coming from India’s services exports and $13.78 billion from its imports.
