India and UK Implement Landmark Comprehensive Economic and Trade Agreement

The India-UK Comprehensive Economic and Trade Agreement (CETA) and a concurrent Agreement on Social Security entered into force on July 15, 2026. Signed in July 2025 by Prime Ministers Narendra Modi and Keir Starmer, the pact aims to double annual bilateral trade to approximately $100-120 billion by 2030 and increase the long-term GDP of both nations by roughly £5 billion.

The agreement grants duty-free access to nearly 99% of Indian exports, significantly benefiting labor-intensive sectors such as textiles, leather, gems, jewellery, and pharmaceuticals. In return, India will reduce or eliminate tariffs on roughly 90% of UK goods over a decade. Immediate reductions include cutting customs duties on Scotch whisky from 150% to 75% and lowering tariffs on premium British passenger cars from approximately 110% to 10% via a quota system. India maintained protections for sensitive agricultural products, including dairy and cereals.

Complementing the trade deal, the Double Contribution Convention allows approximately 75,000 Indian professionals on temporary UK assignments to avoid dual social security payments for up to 60 months. The rollout was marked by inaugural cargo shipments of garments from Amritsar and jewellery from New Delhi, as well as the arrival of reduced-tariff British goods in Mumbai.

Despite the agreement's implementation, the UK's Carbon Border Adjustment Mechanism remains separate from the pact, and discussions continue regarding a separate Bilateral Investment Treaty. The transition occurred amid a UK political shift, with Mayor Andy Burnham positioned to succeed the resigning Keir Starmer as Prime Minister.