Editor’s Note
**Editor’s Note:** The India-UK Comprehensive Economic and Trade Agreement (CETA) took effect Wednesday, expanding market access for Indian exporters in textiles, leather, jewelry, marine products, chemicals, and other sectors.
The India-UK Comprehensive Economic and Trade Agreement (CETA) came into effect on Wednesday. This opens the UK market for exporters in the country’s textile, leather, jewelry and gem, marine products, chemical, and other sectors, providing them with greater export opportunities than before.
Union Minister of Commerce and Industry Piyush Goyal said on social media platform ‘X’ regarding the implementation of the India-UK CETA that this agreement, achieved under the leadership of Prime Minister Narendra Modi, is a milestone in the bilateral relations between the two countries. It will provide zero-duty access to the UK for nearly 99% of India’s exports, covering 100% of India’s trade value.
According to Piyush Goyal, this trade agreement will open significant export opportunities for textiles, leather, gems and jewelry, engineering goods, marine products, chemicals, processed foods, as well as MSMEs, farmers, and other manufacturers. He stated that the agreement also opens new avenues for India’s IT, professional, financial, education, and business service sectors, while also increasing mobility opportunities for Indian talent.
Referring to the Social Security Agreement, Goyal said it exempts Indian professionals on temporary work assignments in the UK from making dual social security contributions for up to five years, thereby enhancing the global competitiveness of the country’s workforce. Additionally, Goyal thanked his UK counterpart Peter Kyle and the negotiating teams of both countries for their role in finalizing the agreement.
Under this trade agreement, tariffs on several British products such as Scotch whisky, gin, chocolate, biscuits, and cosmetics will now begin to decrease. However, duty reductions on many products will be implemented gradually over the coming years.
This important trade agreement was signed on July 24, 2025, after 14 rounds of negotiations. It comprises 30 chapters covering topics such as trade in goods and services, digital trade, financial services, intellectual property, innovation, sustainability, and government procurement. Under this agreement, India will reduce or eliminate tariffs on 90% of tariff lines, with 85% of these lines becoming fully duty-free over the next decade.
The tariff on British Scotch whisky will be initially reduced from 150% to 75%, and further reduced to 40% over 10 years, while duties on British automobiles will be gradually reduced under a quota-based system.
