The India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) is a bilateral trade pact and a free trade agreement (FTA) between the Republic of India and the United Kingdom. It is a comprehensive concept designed to deepen economic integration beyond traditional tariff reduction, covering trade in goods, services, investment, and professional mobility.
Negotiations for the CETA were formally launched in January 2022. The agreement was concluded in principle on May 6, 2025, formally signed on July 24, 2025, and came into effect on July 15, 2026. It was created to enhance economic cooperation and reduce trade barriers, marking the UK's most significant bilateral FTA since leaving the European Union.
The CETA grants zero-duty access to nearly 99% of India's exports to the UK, covering almost the entire value of bilateral trade. For the UK, 64% of its tariff lines became duty-free at entry into force, rising to 85% when fully implemented. Key mechanisms include the Double Contribution Convention (DCC), which exempts Indian professionals on assignments up to 60 months in the UK from dual social security contributions. The agreement also includes a chapter on Government Procurement, opening selected central government tenders to UK firms, a first for India in an FTA. To qualify for preferential tariffs, goods must meet the agreement's rules of origin, such as the "Melt and Pour" rule for steel.
The CETA connects to India's broader trade policy, being its second comprehensive FTA with a European country after the EFTA agreement. Sensitive sectors in India, such as dairy, cereals, and edible oils, are protected through calibrated market access and phased tariff liberalisation. The agreement is current, having recently come into force on July 15, 2026.