With CETA now in force, nearly 99% of India’s exports to the UK receive zero-duty access, while expanded services commitments and trade facilitation create new opportunities—but exporters still need to meet rules of origin, product requirements and UK market standards.
KEY TAKEAWAY
The India–UK Comprehensive Economic and Trade Agreement (CETA) entered into force on 15 July 2026, moving the agreement from negotiation and ratification into implementation. The Government of India says CETA provides zero-duty access on nearly 99% of India’s tariff lines, covering almost 100% of India’s trade value.
For Indian exporters, however, the commercial opportunity is not simply about removing customs duties. Preferential treatment depends on satisfying the agreement’s Rules of Origin, completing applicable origin procedures and meeting UK regulatory and product requirements.
The result is a potentially important new market-access framework—but businesses still need to evaluate their products, costs, compliance and buyers individually.
CETA Is Now in Force
India UK CETA entered into force on 15 July 2026, putting the negotiated market-access commitments into operation. The first consignments under the preferential trade framework were flagged off from India, while Certificates of Origin under the agreement began being issued through India’s eCoO 2.0 platform.
The agreement covers goods and services and includes provisions dealing with areas such as trade facilitation, professional mobility, digital trade and economic cooperation.
For Indian businesses, the key change is practical: the preferential market-access framework is now operational.
India–UK Trade Starts From an Established Base
India UK CETA is being implemented on top of an already substantial bilateral trading relationship.
Government of India data shows merchandise trade between India and the UK reached US$25.12 billion in 2025–26. India’s exports were US$13.44 billion, while imports were US$11.68 billion, giving India a merchandise trade surplus of US$1.76 billion.
Services are an even larger component of the relationship. Bilateral services trade reached US$35.44 billion in 2024, with Indian services exports at US$21.66 billion and imports at US$13.78 billion. India’s services surplus was therefore US$7.88 billion.
CETA therefore builds on an existing commercial relationship rather than creating one from scratch.
What Changes for Indian Goods Exporters?
The central goods-market benefit is preferential tariff access in the UK.
The Government of India describes CETA as providing zero-duty access on nearly 99% of India’s tariff lines, covering almost 100% of India’s trade value. The UK has also agreed to liberalise tariffs on most Indian-originating goods under its negotiated schedule.
For an eligible product, a lower or zero tariff can improve its landed-price position against competing suppliers.
But tariff treatment is only one part of the export equation.
An exporter still needs to assess:
- Correct HS classification
- Applicable UK tariff
- CETA preferential tariff
- Rules of Origin
- Origin documentation
- UK product standards
- Labelling and regulatory requirements
- Customs procedures
- Logistics and freight costs
- Buyer specifications
CETA creates an opportunity to compete; it does not guarantee sales.
Where the Biggest Export Opportunities Are
Textiles and Apparel
Textiles and apparel are among the sectors where improved UK market access could be significant.
The Government of India estimates that the UK imports around US$28.8 billion of textiles and clothing, while India’s exports to the UK are around US$1.79 billion. CETA provides zero-duty access across 1,143 tariff lines for textile products.
Potential opportunity areas include:
- Ready-made garments
- Home textiles
- Carpets
- Handicrafts
- Cotton shirts and dresses
- T-shirts and vests
- Bedding
- Towels and household linen
For Indian manufacturers, the tariff change could improve competitiveness, but sustained growth will still depend on quality, pricing, delivery reliability and buyer relationships.
Agriculture and Food
The UK is a significant market for agricultural and processed-food products.
The Government of India identifies opportunities for Indian exports including tea, mangoes, grapes, spices and processed food products. CETA provides zero-duty access across 1,437 agricultural tariff lines.
But tariff access does not remove the UK’s sanitary, phytosanitary or food-safety requirements. The UK Government explicitly states that its SPS framework continues to apply.
For agricultural exporters, therefore, tariff preference and regulatory compliance must be treated as separate requirements.
Engineering Goods
Engineering could become one of the most commercially important areas.
The Government of India estimates that the UK imports approximately US$193.52 billion of engineering goods, compared with Indian exports to the UK of around US$4.28 billion.
CETA provides zero-duty access across 1,659 tariff lines, with tariffs of up to 18% eliminated on covered products.
Potential areas include:
- Electrical machinery
- Auto components
- Industrial equipment
- Construction machinery
The Government of India has projected that engineering exports to the UK could exceed US$7.5 billion by 2029–30. This is a government projection, not a guaranteed outcome.
Marine Products
The UK imports approximately US$4.9 billion of marine products annually, while India’s exports to the UK are around US$126 million, according to the Government of India’s CETA material.
CETA’s tariff improvements could therefore create an opportunity for Indian seafood exporters, particularly in products such as shrimp and other processed marine products.
But seafood exports remain dependent on food-safety, traceability, processing and certification requirements.
Pharmaceuticals and Medical Devices
The UK pharmaceutical market also presents a significant market gap.
The Government of India estimates UK pharmaceutical imports at nearly US$30 billion, while imports from India remain below US$1 billion. CETA provides zero-duty access across 56 pharmaceutical tariff lines and removes duties on a range of medical devices.
This could support opportunities for Indian pharmaceutical and medical-device exporters that can meet the relevant UK regulatory requirements.
Chemicals and Plastics
CETA also provides improved access for industrial products.
The Government of India says zero-duty access covers 1,206 chemical tariff lines, including products such as fertilisers, industrial chemicals and petrochemicals.
Eligible plastic products also receive improved access, covering areas such as packaging, films, sheets, pipes, tableware and kitchenware.
Services Could Be a Second Export Engine
CETA is not only a merchandise-trade agreement.
India secured UK commitments covering all 12 major services sectors and 137 sub-sectors, representing more than 99% of India’s services export interests, according to the Government of India.
Areas covered include:
- IT and IT-enabled services
- Professional services
- Business services
- Telecommunications
- Financial services
- Education
- Engineering
- Consultancy
Given India’s existing services surplus with the UK, this part of the agreement could be as important to Indian businesses as merchandise tariff reductions.
Professional Mobility Expands the Services Opportunity
CETA also contains provisions covering temporary movement of business professionals.
The framework covers categories including business visitors, intra-corporate transferees, investors, contractual service suppliers and independent professionals, subject to the agreement’s conditions.
India and the UK have also committed to work toward Mutual Recognition Agreements covering professions including nursing, accountancy and architecture.
For Indian service companies operating internationally, the ability to combine cross-border service delivery with temporary professional mobility can be commercially relevant.
Rules of Origin: The Condition Behind the Tariff Benefit
This is one of the most important issues for exporters.
A product being shipped from India does not automatically make it eligible for CETA preferential treatment.
The agreement’s Rules of Origin determine whether goods qualify. The UK Government’s rules specify criteria covering wholly obtained or produced goods, originating materials and product-specific rules.
Exporters should therefore establish:
- The correct HS classification.
- The CETA tariff applicable to the product.
- The applicable Rule of Origin.
- Whether the product satisfies the product-specific rule.
- What evidence is required to demonstrate origin.
- What origin declaration or certification procedure applies.
This is where understanding the FTA moves from policy awareness to operational export planning.
Certificates of Origin and Trade Documentation
India began issuing Certificates of Origin under CETA through the eCoO 2.0 platform when the agreement entered into force.
For Indian exporters, the important point is that origin documentation should be treated as part of the export transaction rather than something addressed after the shipment has been planned.
Exporters should verify the applicable CETA origin documentation and procedure through the authorised Indian system before claiming preferential treatment.
CETA Does Not Liberalise Every Product
The overall “99%” figure should not be interpreted as unrestricted duty-free access for every product.
India has retained exclusions, phased concessions and other protections for sensitive agricultural and strategically important sectors. The UK Government’s goods chapter also identifies products and sectors subject to specific treatment.
The practical rule for exporters is simple:
Check the exact product and tariff line rather than relying on the headline percentage.
This is particularly important for businesses operating in sensitive agricultural sectors.
The Double Contribution Convention Could Reduce Assignment Costs
Alongside CETA, India and the UK brought into force the Double Contribution Convention, addressing social-security contributions for eligible temporary assignments.
The Government of India says the arrangement eliminates dual social-security contributions for eligible assignments of up to 60 months, and estimates that it could benefit more than 75,000 Indian professionals and around 900 Indian companies.
The measure is particularly relevant to Indian IT, consulting, professional-services and other companies sending personnel to the UK.
What Indian Exporters Should Do Now
The first step should not simply be to advertise a product as “CETA eligible.”
Exporters should conduct a product-level market-access assessment.
Before quoting a UK buyer, check:
Product — Confirm the exact specification and HS classification.
Tariff — Compare the normal UK tariff with the applicable CETA preferential tariff.
Origin — Determine whether the product satisfies the relevant Rules of Origin.
Documentation — Confirm the applicable origin certification or declaration process.
Compliance — Check UK food, safety, environmental, labelling or technical requirements where applicable.
Landed cost — Calculate the complete cost after freight, insurance, customs procedures and other charges.
Buyer requirements — Confirm packaging, certification, quantity, delivery schedule and payment terms.
Market development — Identify importers, distributors, retailers, institutional buyers or other suitable UK partners.
The real commercial value of CETA will emerge when exporters move from tariff awareness to market execution.
What to Watch Next
The next stage of the India–UK trade relationship will be less about announcing the agreement and more about measuring how businesses use it.
The Exim Times will be watching:
- Growth in Indian exports to the UK after implementation
- Sector-wise utilisation of preferential tariffs
- New Indian exporters entering the UK market
- Textile, engineering, marine and pharmaceutical export performance
- Services exports and professional mobility
- Use of eCoO and origin procedures
- UK regulatory developments affecting Indian products
- Buyer and distributor activity
- Changes in India’s competitive position against other suppliers
For exporters, the key question is no longer simply:
“What does CETA offer?”
It is:
“Which of my products qualify, what will my landed cost be, and which UK buyers can I reach?”
That is where a trade agreement moves from policy to business opportunity.
SOURCE
Primary sources:
Ministry of Commerce & Industry / Press Information Bureau — India–UK CETA implementation and market-access background
UK Department for Business and Trade — India–UK CETA: Trade in Goods
UK Department for Business and Trade — India–UK CETA: Rules of Origin
UK Department for Business and Trade — India–UK CETA: Sanitary and Phytosanitary Measures
UK Department for Business and Trade — India–UK CETA: Temporary Movement of Natural Persons
