The Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom took effect on July 15, 2026 [5].
The agreement marks a significant shift in bilateral relations by removing trade barriers to stimulate economic growth. It aims to support small businesses and farmers while deepening the strategic partnership between the two nations.
Under the terms of the pact, the UK will grant zero customs duty on a significant portion of Indian exports. Reports on the exact scope vary, with one source citing 97.1% [1] and another stating nearly 99% [2] of exports will be duty-free.
Indian Commerce Minister Piyush Goyal and Indian High Commissioner to the UK Vikram Doraiswami have been central to the implementation of the deal. The agreement is designed to create jobs and provide a boost to micro, small, and medium enterprises (MSMEs) in India [3].
The two governments have set an ambitious target to lift total bilateral trade to approximately $100 billion within the next two to three years [3]. This goal reflects a concerted effort to integrate the two economies more closely through reduced tariffs and improved social security coordination [5].
The pact is expected to facilitate a higher volume of goods moving between the two regions, particularly benefiting Indian sectors that previously faced high import duties in the UK market [3].
“The agreement aims to lift bilateral trade to about $100 billion within two to three years.”
The activation of CETA represents a pivot toward aggressive trade liberalization for India. By securing near-total duty-free access to the UK market, India is positioning itself as a primary manufacturing and service hub for Western Europe, while the UK seeks to diversify its trade dependencies following its exit from the European Union.
