India and the United Kingdom have officially implemented their Comprehensive Economic and Trade Agreement (CETA), marking a major milestone in bilateral economic relations. The agreement, effective from Wednesday, eliminates or reduces tariffs on thousands of products, making several goods cheaper while opening new opportunities for businesses and professionals in both countries.
Under the pact, the UK has removed duties on nearly all Indian exports, giving sectors such as textiles, leather, footwear, marine products, gems and jewellery, engineering goods, chemicals and processed foods duty-free access to the British market. Indian spices, fruits and vegetables are also expected to become more competitive in the UK.
For Indian consumers, imported British products including whisky, chocolates, cosmetics, soft drinks, lamb, premium automobiles, medical devices and optical equipment are set to become more affordable as tariffs are reduced in phases.
The agreement also strengthens trade in services by boosting opportunities in IT, financial services, healthcare, education, engineering and consultancy. Indian professionals temporarily working in the UK will be exempt from paying National Insurance contributions for up to five years.
According to the UK government, India will reduce or eliminate tariffs on 90% of tariff lines, while Britain has removed duties on 96.8% of tariff lines covering 97.7% of existing trade. However, sensitive sectors such as poultry, eggs, sugar and dairy remain outside the scope of the agreement.
The India-UK trade pact is expected to deepen investment, expand market access and strengthen economic cooperation, making it one of the most significant bilateral trade agreements between the two nations in recent years.
