Editor’s Note
The Comprehensive Economic and Trade Agreement (CETA) between India and the UK took effect on July 15, marking a milestone in bilateral ties. With immediate tariff reductions on Indian exports, key sectors like textiles, footwear, and jewelry stand to gain.
The Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom officially took effect on July 15, marking a significant step in bilateral economic relations.
Báo Quốc Tế
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17/07/2026
Most tariffs imposed by the UK on goods exported from India will be removed with immediate effect. This move is expected to significantly boost labor-intensive industries such as textiles, footwear, and jewelry, while enhancing the competitiveness of Indian goods in the UK market.
Beyond goods, CETA also expands opportunities for service businesses in both countries, improving market access and creating more favorable conditions for cross-border investment, business operations, and service provision. It is seen as a foundation for boosting bilateral trade and investment in the coming years.
Conversely, British businesses will also benefit from greater access to the Indian market, as New Delhi implements a tariff reduction roadmap and applies preferential quotas for several product groups, including the automotive sector—an area traditionally subject to heavy protection.
Commenting on the official implementation of the agreement, Indian Minister of Commerce and Industry Piyush Goyal said it is
According to Mr. Goyal, the Free Trade Agreement (FTA) will open unprecedented opportunities for several key Indian export sectors, including textiles, footwear, gems and jewelry, engineering goods, seafood, chemicals, processed foods, as well as micro, small, and medium enterprises (MSMEs), farmers, and manufacturers.
Additionally, the agreement is expected to further accelerate the development of India’s service sectors in the UK market, such as information technology, professional services, finance, education, and business services, while expanding mobility and employment opportunities for India’s skilled workforce.
In a message posted on social media platform X, Indian Prime Minister Narendra Modi confirmed that the agreement will usher in a deeper phase of economic growth between the two countries. According to Mr. Modi, many of India’s dynamic economic sectors will gain better access to the UK market. The agreement will also foster collaboration in technology, professional services, and innovation, and facilitate employment for highly skilled Indian workers in the UK.
According to UK government policy documents, tariff reductions will make many British goods more price-competitive in the Indian market. Products that will benefit include cosmetics, whiskey, chocolate, soft drinks, and sheep meat. Furthermore, several London-based manufacturing sectors, such as automobiles, electronic components, high-tech optical equipment, and medical devices, are expected to increase their market share in the South Asian country.
In the services sector, the agreement also facilitates labor mobility. Accordingly, Indian workers temporarily employed in the UK will be exempt from paying UK National Insurance contributions for up to five years, significantly reducing costs for both workers and businesses.
Meanwhile, India’s Minister of Commerce and Industry stated that the agreement is expected to directly benefit over 75,000 professionals and more than 900 businesses. Sectors most likely to benefit include information technology, finance, professional services, healthcare, education, engineering, telecommunications, and consulting.
