The India–UK trade agreement is in force: what changes for UK buyers

The India–UK Comprehensive Economic and Trade Agreement (CETA) entered into force on 15 July 2026, a year after it was signed in London on 24 July 2025. A separate agreement on social security contributions for posted workers took effect on the same day.

What UK importers get

According to India's Commerce Ministry, the UK has removed tariffs on 98.8% of its tariff lines, covering about 99.5% of the value of Indian exports. The largest gains are in labour intensive goods:

• Textiles and clothing: duty free across all lines, removing UK duties of up to 12%.
• Leather and footwear: duties of up to 16% removed.
• Marine products, gems and jewellery, processed foods, auto parts and chemicals also gain duty free access.

More than 50 consignments worth over US$140 million were shipped from India to the UK under CETA on its first day.

What India gives the UK

India's offer covers 89.5% of its tariff lines. About 64% of UK tariff lines are duty free into India from entry into force, rising to 85% within ten years. India's tariff on Scotch whisky has been halved from 150% and will fall further over ten years. India kept dairy, apples, oats and edible oils out of the deal.

What this means for UK buyers

• Indian towels, bed linen, rugs, apparel and footwear are now on a level footing with suppliers in countries such as Bangladesh and Cambodia, which already had duty free access to the UK.
• The preference is only available if the goods meet the agreement's rules of origin and you hold valid origin documents. Check the rule for your product, especially for garments that use imported fabric.
• Review your landed cost. A duty saving of up to 12% on textiles can change which origin is cheapest.

SRV supplies UK hotel groups, retailers and importers. Ask us to re-quote your current range on CETA terms.

Sources

• Press Information Bureau, India–UK CETA to enter into force on 15 July 2026
• Business Today, India–UK CETA is India's most aspirational trade agreement to date (14 July 2026)
• The Tribune, Major export sectors get zero duty access in UK
• ODI, Historic UK–India trade deal enters into force

This article is general information, not legal, tax or customs advice. Trade rules change often, so confirm the position for your product with your customs broker before you ship.