India-UK trade pact CETA effective July 15 2026

A landmark trade agreement between India and the United Kingdom will take effect on July 15, 2026, establishing a comprehensive economic partnership that officials describe as one of India's most ambitious and far-reaching free trade pacts to date. The India-UK Comprehensive Economic and Trade Agreement (CETA) aims to significantly deepen economic ties by liberalizing trade in goods and services, reducing barriers to investment, and fostering regulatory cooperation.

The agreement, signed on July 25, 2025, after extensive negotiations, provides immediate and phased tariff elimination on a vast majority of bilateral trade. According to India's Commerce Ministry, the UK has offered tariff liberalization on 98.8% of tariff lines, covering 99.5% of the value of Indian exports, with 97.7% of that trade value becoming duty-free immediately. India's offer covers 89.5% of tariff lines and 89.4% of trade value. This will grant Indian exporters in labor-intensive sectors like textiles, garments, leather, footwear, gems and jewelry, marine products, and engineering goods duty-free access to the UK market, where current duties range from 4% to 18%.

In return, India will reduce tariffs on a...