India-UK CETA Set to Launch in May — 99 Percent of Indian Exports to Enter British Market Duty-Free
India-UK CETA, covering 99 per cent zero-duty exports, is expected to be implemented in May 2026.
The long-awaited India-UK free trade agreement is likely to come into force from the second week of May, according to an official. The pact, signed on July 24, 2025, marks a significant step in strengthening economic ties between the two nations. Once implemented, it is expected to boost trade and investment flows. Officials have indicated that preparations for rollout are in the final stages. The agreement is seen as a major milestone in bilateral relations.
The Comprehensive Economic and Trade Agreement (CETA) will allow 99 per cent of Indian exports to enter the UK market at zero duty. This move is expected to significantly benefit Indian exporters across sectors. At the same time, India will reduce tariffs on several British goods. Key products like cars and whisky will become more affordable in the Indian market. The pact aims to create a balanced trade environment for both countries.
In addition to CETA, both nations have also signed the Double Contributions Convention (DCC). This agreement will prevent temporary workers from paying social security contributions in both countries. It is expected to ease financial burdens on professionals working abroad. Officials have said that both agreements will likely be implemented together. This dual rollout will further strengthen economic cooperation.
The broader goal of the agreement is to double bilateral trade to around USD 56 billion by 2030. India has opened its market to several consumer goods, including chocolates, biscuits, and cosmetics. In return, Indian industries such as textiles, footwear, and jewellery will gain better access to UK markets. Sectors like sports goods and toys are also expected to benefit. The agreement is designed to create long-term growth opportunities.
One of the key highlights of the pact is the reduction in tariffs on Scotch whisky. Duties will be cut from 150 per cent to 75 per cent immediately after implementation. Over time, these tariffs will be further reduced to 40 per cent by 2035. This phased reduction is expected to boost imports and increase competition. Overall, the agreement is seen as a win-win for both economies.
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