Editor’s Note
**Editor’s Note:** The India-UK Comprehensive Economic and Trade Agreement (CETA) takes effect today, granting zero-duty access to 99% of Indian exports to the UK. This landmark deal opens a major consumer market for Indian goods, lowers costs for premium British imports, and is expected to boost investment, job creation, and key sectors like manufacturing and services.
99% of Indian exports to the UK will now get zero-duty access. The India-UK Comprehensive Economic and Trade Agreement (CETA) has come into effect today. The landmark deal opens up one of the world’s largest consumer markets to Indian exporters while making several premium British products more affordable for Indian buyers. Experts believe it will strengthen investment ties, create jobs, and give a fresh push to India’s manufacturing and services sectors.
The trade deal will make imported Scotch whisky, premium British cars, cosmetics, chocolates, and select food products cheaper for Indian consumers. India’s import duty on Scotch whisky will be slashed from 150% to 75% immediately and further to 40% over a period of 10 years. Moreover, nearly 99% of Indian exports to the UK will now get zero-duty access under this agreement. This covers almost all goods India sells there.
The sectors that are likely to benefit the most from this trade deal include textiles and garments, leather and footwear, gems and jewelry, marine products, engineering goods, auto components, processed food, chemicals, pharmaceuticals, as well as agricultural products. The tariff elimination is expected to boost profit margins for these sectors while encouraging higher production levels and creating new jobs across manufacturing clusters.
The trade deal also promises to benefit Indian IT companies, consulting firms, engineers, architects, accountants, healthcare professionals, and education service providers. They are expected to get easier market access and greater regulatory certainty in the UK. The agreement covers 137 service sub-sectors, making it one of India’s most comprehensive services-focused trade pacts.
A major feature of the trade deal is the Double Contribution Convention (DCC). Indian professionals temporarily working in the UK will no longer have to make social security contributions in both countries for assignments up to five years. This reduces costs for both employees and employers while improving competitiveness of Indian companies operating overseas.
The impact of the trade deal on Indian consumers will be gradual rather than immediate. Luxury British products are likely to become more competitively priced over time as tariff reductions take effect. However, the biggest gains are expected to come from stronger exports, rising manufacturing activity, new jobs, and increased foreign investment.