India-UK Trade Agreement to Enforce Duty-Free Access from July 15

The India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) will commence on July 15, marking a significant shift in trade relations between the two nations. This agreement allows Indian exporters to benefit from duty-free access to nearly all UK markets while simultaneously lowering tariffs on various British goods.

Under this new framework, tariffs on an extensive array of British products—including Scotch whisky, gin, chocolates, biscuits, and cosmetics—will begin to decline, enhancing affordability for Indian consumers. However, these tariff reductions will be implemented gradually over the following years.

Approximately 99 per cent of tariff lines will receive zero-duty access for Indian exporters, covering nearly the entire volume of India's exports to the UK. Sectors such as textiles, leather, footwear, marine products, gems and jewellery, sports equipment, and toys are expected to reap substantial benefits from these new provisions. Likewise, the engineering, automotive components, and organic chemicals sectors are also anticipated to gain from improved market access.

The Central Board of Indirect Taxes and Customs (CBIC) has outlined the regulations that will determine whether goods meet the criteria for preferential tariff treatment under the CETA. These rules also define compliance measures for both exporters and importers.

Union Commerce and Industry Minister Piyush Goyal has previously expressed optimism regarding the CETA, asserting that it would enhance collaboration between India and the UK across trade, investment, and innovation. "This agreement will create new opportunities for businesses and professionals," he stated, emphasizing the importance of Indian firms strengthening ties with their UK counterparts.

Earlier this June, Goyal asserted that this landmark agreement would benefit Indian farmers, fishermen, artisans, and small businesses, thereby facilitating global prosperity. He highlighted that access to the premier UK market opens up attractive opportunities for women entrepreneurs, young professionals, startups, and micro, small, and medium-sized enterprises (MSMEs), all while safeguarding India's core interests.

The CETA, signed on July 24, 2025, resulted from 14 rounds of negotiations and encompasses 30 chapters that cover goods, services, digital trade, financial services, intellectual property, innovation, sustainability, and government procurement.

Additionally, India is set to reduce or remove tariffs on 90 per cent of tariff lines, with 85 per cent expected to be completely duty-free within the next decade. Tariffs on British Scotch whisky will decrease from 150 per cent to 75 per cent initially, and further to 40 per cent over a 10-year span. Tariff reductions on British automobiles will be executed gradually using a quota-based mechanism.

An important provision in the pact also addresses the welfare of Indian professionals working temporarily in the UK. The Double Contributions Convention allows these individuals to avoid paying social security contributions in both nations for a designated timeline.