India and the United Kingdom have jointly announced that their long-awaited Comprehensive Economic and Trade Agreement (CETA) will come into force on July 15, 2026, marking a significant milestone in bilateral economic relations and what London has described as the fastest implementation of a trade deal after signing in its history.

The agreement was formally signed on July 24, 2025, between the two countries following months of negotiations aimed at strengthening trade, investment, and supply chain linkages. The India-UK Comprehensive Economic and Trade Agreement is expected to significantly expand market access, reduce tariffs, and deepen cooperation across key sectors including manufacturing, services, agriculture, and technology.

Prime Minister Narendra Modi welcomed the announcement, describing it as a “historic milestone” in India-UK relations. He said the agreement would open new opportunities for Indian farmers, workers, micro, small and medium enterprises (MSMEs), startups, and innovators, while also strengthening broader economic engagement between the two countries. His UK counterpart, Prime Minister Keir Starmer, also confirmed the implementation date, underscoring the strategic importance of the deal for both economies.

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The implementation timeline had initially faced delays due to regulatory clearances on both sides, followed by additional complications linked to the United Kingdom’s move to introduce domestic steel safeguard measures. These measures became a point of contention as they would have limited duty-free access for Indian steel exports to around 60 percent of quota volumes in the UK market.

Subsequent negotiations led to a compromise, with London agreeing to increase the duty-free quota for Indian steel to 85 percent, easing one of the key sticking points in finalising implementation. Officials from both governments have described the resolution as critical in clearing the path for the agreement’s rollout. With the entry into force now confirmed, the CETA is expected to provide a structured framework for boosting bilateral trade flows and investment ties, while also signalling a broader strategic alignment between New Delhi and London at a time of shifting global economic dynamics.

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