India-UK Trade Agreement Begins, Boosting Indian Exports

Jul 16, 2026

72 min

Jul 16, 2026 10:30

India-UK trade deal takes effect, giving nearly all Indian exports duty-free access

## Key Details of the Trade Agreement

India's Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom has officially commenced, providing duty-free access to nearly all Indian exports to the UK. This marks India's most extensive bilateral free trade agreement to date.

The agreement eliminates tariffs on 99% of tariff lines, covering almost the entire value of India's exports to the UK. This development is expected to open new opportunities for small businesses, farmers, and various industries by enhancing access to one of India's largest export markets.

## Economic Impact and Future Prospects

The Indian government anticipates that the agreement will generate numerous jobs and business opportunities. It is also expected to gradually expose Indian manufacturers to international standards, offering consumers more competitively priced, high-quality goods.

Industries such as gems and jewellery are poised to benefit significantly, with exports to the UK projected to increase by 230% to $2.5 billion within three years. Engineering goods exports are also expected to nearly double to $7.5 billion over the next four to five years.

## Strategic Importance

The trade deal was signed last year by Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer after extensive negotiations. It comes into effect as Indian exports continue to grow despite global trade challenges. The agreement aligns with India's Viksit Bharat 2047 agenda, aiming to expand export opportunities, attract investment, and strengthen trade ties between the two major economies.

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