The India–UK Comprehensive Economic and Trade Agreement entered into force on 15 July 2026. For UK exporters, it is the biggest improvement in access to the Indian market in a generation. But lower tariffs are not automatic: businesses need to check their products, meet the rules of origin and complete the right paperwork.
What has changed
India has reduced or removed tariffs on 90% of its tariff lines, covering 92% of current UK goods exports. On day one, 64% of lines became tariff-free. That will rise to 85% over ten years as the remaining cuts are phased in.
The headline sectors:
- Scotch whisky and gin: tariffs have fallen from 150% to 75%, and will reach 40% by the tenth year.
- Cars: tariffs fall from over 100% to 10%, within a quota.
- Aerospace and instruments: certain aircraft parts and measuring instruments became tariff-free from day one.
- Food: products such as salmon, cod and lamb gain better access.
Some sensitive products are excluded from India's cuts, including dairy, apples, cheese and vegetable oils.
Beyond goods
The agreement also opens services and procurement. UK firms can supply covered services, such as telecoms, environmental and construction services, without setting up an Indian company. They can also bid for certain Indian central government and state-owned enterprise contracts. UK businesses manufacturing in India can qualify as "local suppliers" under India's procurement rules if at least 20% of the product or service originates in the UK.
People
The Double Contribution Convention entered into force on the same day. Staff on temporary postings between the two countries now pay social security contributions in one country rather than two, cutting the cost of sending people to India.
Five steps to take now
- Find the tariff code for each product and check its new rate and staging timetable.
- Check that each product meets the CETA rules of origin.
- Prepare the origin documentation your Indian buyer will need to claim the preferential rate.
- Review your pricing and contracts to share the tariff saving with buyers.
- Look at Indian public procurement opportunities now open to UK bidders.
How UKISIF can help
We brief members on the agreement's sector detail and introduce them to Indian buyers, state investment bodies and advisers. See also our CETA hub.
General information only, not legal, tax or customs advice. Last reviewed [date].
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