The India-UK Comprehensive Economic and Trade Agreement (CETA) has officially come into force, with Union Minister Piyush Goyal calling it a major milestone in bilateral economic relations. The pact provides zero-duty market access for nearly 99 per cent of India’s exports and introduces wider trade opportunities between the two countries…reports Asian Lite News Desk
The India-UK Comprehensive Economic and Trade Agreement (CETA) has officially come into force, with Union Commerce and Industry Minister Piyush Goyal describing it as a defining milestone in bilateral ties between the two countries.
Announcing the development on Wednesday, Goyal said the trade agreement, along with the Agreement on Social Security, became operational under the leadership of Prime Minister Narendra Modi.
In a post on X, Goyal said the agreements would provide zero-duty market access for nearly 99 per cent of India’s exports and cover almost 100 per cent of the total trade value.
“Today marks a defining milestone in India-UK ties. Under the dynamic leadership of PM Modi, the India-UK Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security have come into force,” Goyal said.
The minister said the agreement would create new opportunities for key sectors including textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed foods. He added that the pact would also benefit micro, small and medium enterprises, farmers and manufacturers.
The agreement is expected to expand opportunities for India’s services sector, including information technology, professional services, financial services, education and business services. It also includes provisions aimed at improving mobility opportunities for Indian professionals.
Highlighting the social security agreement, Goyal said Indian professionals working temporarily in the UK would be exempt from making double social security contributions for up to five years. The measure, he said, would improve the competitiveness of Indian workers globally.
Goyal also thanked UK Business and Trade Secretary Peter Kyle and the negotiating teams from both countries for their role in finalising the agreements.
Under the trade pact, tariffs on a range of British products, including Scotch whisky, gin, chocolates, biscuits and cosmetics, will begin to reduce. However, tariff cuts for several products will be implemented gradually over the coming years.
The landmark agreement was signed on 24 July 2025 after 14 rounds of negotiations. It includes 30 chapters covering areas such as trade in goods and services, digital trade, financial services, intellectual property, innovation, sustainability and government procurement.
As part of the agreement, India will reduce or remove tariffs on 90 per cent of tariff lines, with 85 per cent becoming fully duty-free over the next decade.
Tariffs on British Scotch whisky will be reduced from 150 per cent to 75 per cent initially and later lowered to 40 per cent over a 10-year period. Duties on British automobiles will also be reduced gradually through a quota-based system.
The agreement comes as India and the UK seek to strengthen economic cooperation and increase trade flows between the two markets. Both countries have highlighted the deal as a step towards deeper commercial engagement, greater investment opportunities and expanded cooperation across multiple sectors.
