India-UK FTA Comes Into Force, Giving 99% of Indian Exports Duty-Free Access to UK

Jul 15
3 min read

India-UK FTA comes into force as Indian exports gain duty-free access to the UK market.

News Alert

India's Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom came into force on July 15, 2026, granting duty-free access to nearly 99% of Indian exports to the UK. The agreement is expected to boost trade, strengthen market access for Indian businesses, and expand opportunities for professionals and exporters across multiple sectors.

ndia and the United Kingdom officially implemented their Comprehensive Economic and Trade Agreement (CETA) on July 15, 2026, following the completion of ratification procedures by both governments. The agreement marks one of India's most significant bilateral trade deals in recent years and is designed to deepen economic cooperation between the two countries.

According to the Ministry of Commerce & Industry, CETA provides zero-duty access on around 99% of India's tariff lines, covering almost the entire value of Indian merchandise exports to the UK. The agreement is expected to improve the competitiveness of Indian products in one of the world's largest consumer markets.

Sectors expected to benefit include:

Textiles and apparel
Leather and footwear
Engineering goods
Marine products
Gems and jewellery
Chemicals
Pharmaceuticals
Processed food
Auto components

The agreement also seeks to reduce non-tariff barriers and improve customs procedures to facilitate smoother trade.

India-UK FTA: Latest Developments

Alongside CETA, the Double Contribution Convention (DCC) also came into effect on July 15.

According to the government, the DCC increases the exemption period for Indian professionals temporarily working in the UK from three years to five years, allowing eligible employees and employers to avoid making social security contributions in both countries during that period.

The agreement also expands opportunities for India's services sector across 137 sub-sectors, including:

Information Technology (IT)
IT-enabled services (ITES)
Professional services
Education
Business services

Government officials said the agreement is intended to strengthen bilateral trade while protecting India's sensitive agricultural sectors through negotiated exclusion lists.

Official Statements

According to the Press Information Bureau (PIB), Union Commerce and Industry Minister Piyush Goyal said the simultaneous implementation of CETA and the Double Contribution Convention would create significant new opportunities for Indian exporters by removing tariff barriers and improving competitiveness across sectors such as textiles, leather, marine products, engineering goods and processed food.

The ministry also said the agreement is aligned with India's long-term economic vision and aims to strengthen integration with global value chains.

he India-UK trade agreement is expected to have implications across several sectors:

Exporters: Wider duty-free access could improve the competitiveness of Indian products in the UK.
MSMEs: Smaller manufacturers may gain easier entry into overseas markets.
Services: IT firms and professionals could benefit from improved market access and social security provisions.
Economy: Higher bilateral trade and investment may support employment, manufacturing and supply-chain integration.
Consumers: India will phase down tariffs on selected UK products under the agreement, which could lower prices for some imported goods over time.

Key Facts at a Glance

Focus Keyword: India-UK FTA
Effective Date: July 15, 2026
Location: India and the United Kingdom
Agreement: Comprehensive Economic and Trade Agreement (CETA)
Government: Ministry of Commerce & Industry, Government of India
Key Official: Piyush Goyal, Union Commerce and Industry Minister
Major Provision: Duty-free access for about 99% of Indian exports to the UK
Current Status: Agreement in force

What's Next?

Indian exporters will begin using the new tariff preferences under CETA for eligible exports. Businesses must comply with applicable rules of origin, customs documentation and UK regulatory requirements to claim the agreement's benefits. The implementation of the Double Contribution Convention will also begin for eligible professionals working in the UK.