BT Explainer: India-UK CETA — Zero duty on 99% of exports, 137 services sectors opens for India

India and the United Kingdom are set to activate a landmark economic partnership from July 15, 2026, with the entry into force of the Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security, also known as the Double Contribution Convention (DCC).

The twin agreements are expected to deepen trade ties, boost Indian exports, improve market access for services, and provide relief to thousands of Indian professionals working temporarily in the UK.

What is India-UK CETA?

The Comprehensive Economic and Trade Agreement is a broad-based free trade pact comprising 30 chapters covering goods, services, digital trade, telecommunications, financial services, intellectual property, innovation, sustainability and government procurement.

The agreement was concluded in May 2025 after 14 rounds of negotiations and formally signed in London in July 2025. Both countries have now completed ratification procedures, allowing the pact to come into force on July 15, 2026.

The deal forms part of the India-UK Roadmap 2030, which aims to raise bilateral trade to $100 billion by the end of the decade.

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How will Indian exporters benefit?

One of the biggest gains under CETA is that around 99% of India's exports to the UK, covering almost the entire trade value, will receive duty-free access.

Tariffs that previously ranged up to:

70% on processed food products;
21.5% on marine products;
18% on engineering goods and auto components;
16% on leather and footwear;
12% on textiles and garments; and
8% on chemicals and pharmaceutical products will now be eliminated.

The move is expected to enhance the competitiveness of Indian products in the UK market and create opportunities for farmers, fishermen, MSMEs, manufacturers and exporters.

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At the same time, India has protected sensitive sectors including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products from excessive import competition.

What does the agreement mean for services?

The UK has offered one of its most extensive services packages to India, covering 137 sub-sectors.

Indian firms in information technology, IT-enabled services, professional services, healthcare, education, engineering, financial services, telecommunications and consulting are expected to benefit from greater market access and regulatory certainty.

The pact also provides mobility pathways for business visitors, intra-corporate transferees, investors, contractual service suppliers and independent professionals.

In a unique provision, 1,800 Indian chefs, yoga instructors and classical musicians will receive dedicated annual mobility opportunities under the agreement.

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What is the Double Contribution Convention?

Alongside CETA, the Agreement on Social Security will also come into effect on July 15.

The convention exempts Indian employees and employers from making dual social security contributions in the UK during temporary assignments.

Importantly, the exemption period has been increased from three years to five years, providing a major relief for Indian professionals and companies.

According to the government, more than 75,000 Indian professionals and over 900 companies are expected to benefit.

Why is the agreement significant?

The India-UK CETA represents one of India's most comprehensive trade agreements to date. Beyond lowering tariffs, it seeks to integrate India's manufacturing and services sectors more deeply into global value chains.

With zero-duty access for almost all exports and enhanced mobility for professionals, the agreement marks a significant step in India's broader goal of becoming a globally competitive economy under the "Viksit Bharat 2047" vision.

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