The India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to be implemented by April 2026, according to an Indian government official. The agreement is currently awaiting parliamentary ratification in the United Kingdom, while approval from the Union Cabinet is required in India. Once approved, both CETA and the Double Contributions Convention (DCC) will be implemented in phases, facilitating expanded trade and improved employment mobility between the two nations.
The House of Commons recently discussed the agreement, with Chris Bryant, Minister of State at the Department for Business and Trade, describing it as a significant achievement for both countries. Bryant noted that the deal goes well beyond India’s previous trade commitments in opening access for UK businesses.
The agreement says that 99% of indian exports will enter the British market without duties. India will reduce tariffs on goods such as cars and whisky, thereby opening its market to a wider range of British products. Under the new arrangements, tariffs on Scotch whisky will drop from 150% to 75% immediately, reaching 40% by 2035, and tariffs on automobile imports will decrease to 10%. Instead of imposing very high import taxes (up to 110%) all at once, the government will gradually reduce them over the next five years.
India has committed to increasing market access for British consumers, including chocolates, cosmetics, and biscuits. Indian exports such as footwear, gems & jewellery, sports goods, and toys are expected to see stronger traction in the UK market, complementing India’s parallel efforts to secure greater textile export benefits from the US.
CETA aims to double bilateral trade between India, the world’s fifth-largest economy, and the United Kingdom, the sixth-largest, to $56 billion by 2030, marking a significant step in deepening post-Brexit economic engagement between the two countries.
