India and the United Kingdom's Comprehensive Economic and Trade Agreement (CETA) came into force on Wednesday, cutting tariffs on thousands of products and creating new opportunities for businesses, investors and professionals in both countries.
The agreement is expected to strengthen bilateral trade by improving market access for goods and services while encouraging greater investment between the world's fifth and sixth-largest economies.
Under the agreement, Indian exporters will receive immediate duty-free access to most British tariff lines, providing a significant boost to labour-intensive industries.
Sectors expected to benefit include textiles, leather goods, footwear, marine products, gems and jewellery, and processed foods, where previous UK tariffs ranged from 4 to 20 per cent.
The removal of duties is expected to improve the competitiveness of Indian products in the British market and create new export opportunities.
The agreement also creates wider opportunities for British businesses in one of the world's fastest-growing major economies.
India will immediately eliminate tariffs on 64.1 per cent of tariff lines, with duties on a further 21 per cent to be phased out over time while maintaining protections for sensitive products.
British exporters will benefit from improved access in sectors including automobiles, financial services, insurance, education, professional services and government procurement.
As part of the agreement, India will gradually reduce barriers to British passenger vehicle imports through a quota-based system.
Up to 37,000 completely built vehicles will be allowed to enter India each year under preferential tariff arrangements, reflecting a phased opening of the automotive sector.
The deal also provides improved market access for British alcoholic beverages through a gradual reduction in import duties.
The agreement significantly expands access for service providers across 137 sub-sectors, including information technology, telecommunications, business services, financial services and education.
It also simplifies temporary entry arrangements for business visitors, intra-company transferees, investors, contractual service suppliers and independent professionals, making it easier for companies to operate across both markets.
A linked Double Contribution Convention will exempt eligible Indian professionals and their employers from making contributions to the UK's National Insurance system for assignments lasting up to five years.
Indian officials estimate the arrangement will benefit around 75,000 professionals and approximately 900 employers by reducing the cost of temporary overseas postings.
India's Commerce and Industry Minister, Piyush Goyal, described the agreement as opening "new avenues for trade, investment and innovation", adding that it would create fresh opportunities for Indian businesses.
According to India's Ministry of Commerce, India exported goods worth 13.44 billion U.S. dollars to the United Kingdom and imported goods worth 11.68 billion U.S. dollars during the 2025–26 financial year. Bilateral services trade reached 35.44 billion U.S. dollars in 2024, with India recording a services trade surplus of nearly 7.9 billion U.S. dollars.
The agreement also opens Britain's government procurement market, valued at around £90 billion, to eligible Indian suppliers, while India is providing reciprocal access to procurement opportunities estimated to be worth approximately 114 billion U.S. dollars.
The implementation of the Comprehensive Economic and Trade Agreement marks a significant milestone in India-UK economic relations, with both governments expecting the pact to boost trade, attract investment and deepen cooperation across a wide range of industries in the years ahead.
Türkiye has urged Russia and Ukraine to protect civilian shipping in the Black Sea after a drone struck a Turkish-owned cargo ship, reportedly injuri...
U.S. President Donald Trump criticised major oil companies, including Chevron and Exxon Mobil, on Monday for earning what he described as excessive pr...
U.S. data analytics firm Palantir Technologies has reported a 93 per cent year-on-year jump in second-quarter revenue, even as the company faces conti...
U.S. President Donald Trump says Iran has a "last chance" to sign what he described as "a good document", claiming talks are continuing at Tehran's request with backing from Saudi Arabia, the UAE and Qatar.
Tehran had made plans to strike sites in Ukraine after Kyiv attacked an Iranian cargo ship in the Caspian Sea, a senior Iranian military adviser has said. Iran refrained from taking action after Kyiv said the strike was a mistake, Mohsen Rezaei told the state IRIB TV channel.
Indonesian rescue teams are searching for 28 people still unaccounted for, three days after a passenger ferry caught fire off the coast of Madura island.
Two firefighting helicopters collided while battling a major wildfire in Greece on Sunday, killing two crew members as emergency services continued efforts to contain fires fuelled by extreme heat and dry conditions across Europe.
Nauru, the world’s third smallest country, has changed its name to Naoero, the Pacific island nation’s President said. The new name corresponds to the spelling and pronunciation in the national language.
Iran and the U.S. are making conflicting statements about efforts to negotiate the reopening of the Strait of Hormuz. U.S. President Donald Trump insists talks are under way, while Tehran maintains that negotiations remain on hold.
Romania blasted a rock outcrop to redirect cooling water from the drought-hit Danube River to its only operating nuclear reactor. The unprecedented measure highlights the growing impact of drought and the region's worsening energy crisis.
U.S. President Donald Trump criticised major oil companies, including Chevron and Exxon Mobil, on Monday for earning what he described as excessive profits as renewed tensions with Iran pushed global energy prices higher.
A cyclosporiasis outbreak, the largest ever recorded in the U.S., has caused its first known deaths, health officials in Michigan said on Monday.
Wildfires near Spokane, Washington, have destroyed at least 700 buildings and forced tens of thousands of people to evacuate. The fires have been burning for a third day around the state’s second-largest city, officials said.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment