Editor’s Note
**Editor’s Note:** The India-UK Comprehensive Economic and Trade Agreement (CETA) took effect on July 15, granting duty-free access to 99% of Indian exports to Britain. This landmark deal is expected to significantly boost the competitiveness of Indian goods against European, Chinese, and other rivals.
According to experts, with nearly the entire value of India’s exports to Britain now receiving duty-free access, Indian products will become more competitive compared to those from Europe, China, and other countries.
By
Charanjit Ahuja
–
July 15, 2026
The Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom officially came into effect on Wednesday. Under this agreement, approximately 99% of India’s exported products will receive duty-free access to the British market. This will open the doors of one of the world’s largest consumer markets for Indian exporters, while Indian consumers will be able to obtain several premium British products at relatively lower prices.
Experts believe that this agreement will strengthen trade and investment relations between the two countries, create employment opportunities, and provide new momentum to India’s manufacturing, agriculture, and service sectors.
Union Minister of Commerce and Industry Piyush Goyal stated that along with CETA, the India-UK Social Security Agreement has also come into effect from July 15. He said on social media,
Goyal said that this agreement will create new opportunities for Indian farmers, entrepreneurs, and Micro, Small, and Medium Enterprises (MSMEs). It will also promote cooperation in the fields of technology, innovation, and professional services. The Social Security Agreement will benefit Indian professionals temporarily working in Britain and strengthen the competitiveness of Indian companies.
Under CETA, import duties on approximately 99% of products exported from India to Britain have been eliminated. Products that previously faced duties of up to 70% can now enter the British market with zero duty. This will make Indian products more competitive in the global market.
The major sectors expected to benefit the most from this agreement include:
– Textiles and Ready-made Garments
– Leather and Footwear
– Gems and Jewellery
– Marine Products
– Engineering Products
– Auto Components
– Processed Food Products
– Chemicals
– Pharmaceuticals
– Agricultural Products
– Tea and Coffee
– Electrical Machinery
– Fruits and Horticultural Products
The textile and apparel industry is considered the biggest beneficiary of this agreement. Previously, Indian ready-made garments and textiles faced import duties of 4% to 16% in Britain. Now these duties have been completely eliminated, which is likely to increase the demand and market share of Indian apparel in the British market. This will also boost job creation.
The benefits of CETA will not be limited to exporters alone. In the coming times, Indian consumers may also get several premium British products at lower prices. These include Scotch whisky, luxury cars, cosmetics, chocolates, and some food products, as import duties on these will be phased out gradually.
According to experts, CETA marks the beginning of a new era in the economic relations between India and Britain. By reducing trade barriers and providing better market access, this agreement will boost bilateral investment, strengthen supply chains, and take cooperation in manufacturing, services, and technology sectors to new heights.