The India-UK Comprehensive Economic and Trade Agreement (CETA) and Double Contribution Convention (DCC) came into force on July 15, 2026, granting zero-duty access to nearly 99 per cent of Indian exports to the UK.
The pact is expected to boost trade, investment, manufacturing and jobs, with major gains for textiles, garments, leather, gems and jewellery, engineering goods, agriculture and MSMEs.
Under the agreement, the UK will immediately eliminate tariffs on 96.8 per cent of its tariff lines, covering 97.7 per cent of bilateral trade value. An additional 2 per cent of tariff lines will receive quota-based tariff reductions, taking the total coverage to 98.8 per cent of tariff lines and 99.5 per cent of trade value.
India will immediately remove tariffs on goods accounting for 30.3 per cent of trade value, with another 47 per cent to be liberalised in phases. Reduced quota-based tariffs will apply to 12.1 per cent of trade value, bringing total coverage to 89.5 per cent of tariff lines and 89.4 per cent of trade value.
The agreement provides zero-duty access to nearly 99 per cent of Indian exports to the UK, making Indian products more competitive in one of the world’s largest consumer markets. Labour-intensive sectors expected to benefit the most include textiles and garments, leather and footwear, gems and jewellery, marine products, engineering goods, auto components, processed food, chemicals, pharmaceuticals and agricultural products.
Beyond tariff reductions, the CETA includes 30 chapters covering digital trade, government procurement, innovation, small and medium enterprises (SMEs), labour, environment and gender. It also addresses non-tariff barriers through provisions on Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) to facilitate smoother market access for businesses.
The agreement protects India’s sensitive sectors, including dairy, cereals, pulses, vegetables, gold and jewellery, smartphones and critical polymers, while creating greater certainty for exporters and investors.
Indian consumers may gradually see lower prices for premium British products as tariff reductions take effect, the larger economic gains are expected to come through increased exports, higher industrial activity, job creation and stronger foreign investment.
Indian Prime Minister Narendra Modi described the agreement as a “historic milestone”, saying it would generate new opportunities for farmers, workers, MSMEs, startups and innovators while supporting India’s long-term vision of Viksit Bharat 2047.
Fibre2Fashion News Desk (CG)
