Big Moment: India-UK trade deal takes effect today; here's why businesses should pay attention on CETA

India-UK CETA: India and the UK will implement a comprehensive economic and trade agreement (CETA) from July 15, with an aim to boost two-way commerce to USD 100 billion by 2030, Commerce Secretary Rajesh Agarwal said on Tuesday.

The bilateral trade in goods and services stands at about USD 55-60 billion at present. While goods trade was USD 25.12 billion in 2025-26, services trade stood at USD 35.44 billion in 2024.

"The target is that in the next 3-4 years, we will be able to reach USD 100 billion," news agency PTI reported quoting senior official.

Under the pact, a number of India's export sectors such as textiles, leather and footwear, gems and jewellery and plastics will enter the British market at zero duty from July 15 itself.

The Commerce Secretary said the agreement is among India's most ambitious and aspirational FTAs due to its wide sectoral coverage and deep reduction in both tariff and non-tariff barriers.

According to Agrawal, the agreement covers 30 chapters, extending beyond conventional tariff liberalisation to include areas such as digital trade, government procurement, small and medium enterprises (SMEs), innovation, labour, environment and gender.

He said the agreement addresses both tariff and non-tariff barriers through sanitary and phytosanitary (SPS) and technical barriers to trade (TBT) measures, ensuring that these do not become unjustified trade restrictions for businesses in the future.

At the same time, he said the agreement safeguards India's sensitive sectors, including dairy, cereals, pulses, vegetables, gold and jewellery, smartphones and critical polymers.

Calling the Double Contribution Convention a "game changer" for India's services sector, Agrawal said Indian employees and their employers currently contribute around 25 per cent of salary towards the UK's National Insurance system without being able to claim benefits, making these contributions a sunk cost.

Under the DCC, Indian professionals working in the UK for up to five years and their employers will be exempt from making social security contributions in the UK. Instead, they will continue contributing to India's social security system.

The agreement is expected to benefit over 75,000 Indian workers and more than 900 employers, while improving the competitiveness of India's services sector by eliminating double social security contributions.

Agrawal also highlighted several trade facilitation measures under the agreement, including the introduction of self-certification of rules of origin, which he said would make the agreement more business-friendly and reduce compliance burdens for businesses on both sides.

Describing the agreement as inclusive, he said Indian farmers will gain improved access to the UK's USD 90 billion agriculture market, while seafood exports from India will receive complete duty exemption, benefiting fishermen and the marine products sector.

He added that labour-intensive sectors would also benefit as import duties of up to 12 per cent would come down to zero, creating new employment opportunities. Women entrepreneurs, startups, MSMEs and young professionals are also expected to gain better access to global value chains and enhanced mobility opportunities.

"All in all, it is a win-win proposition for both sides, with India taking a leap in terms of the extent of market liberalisation negotiated and the width of policy areas covered under the agreement," Agrawal said.

Additional Secretary in the Department of Commerce, Darpan Jain, said sensitive segments, including small and mid-segment ICE (internal combustion engine) vehicles and affordable EVs, remain protected, allowing Indian manufacturers to strengthen scale, technology and competitiveness.

Following fourteen intensive rounds of negotiations, CETA was concluded on May 6, 2025. The agreement was officially signed on July 24, 2025, in London by India's Union Minister of Commerce and Industry, Piyush Goyal, and the UK's Secretary of State for Business and Trade, Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer.

To complete the framework, the companion Double Contribution Convention (DCC) was subsequently signed on 10 February 2026.