The India-UK Comprehensive Economic and Trade Agreement (CETA) is a landmark Free Trade Agreement (FTA) and economic integration concept between the Republic of India and the United Kingdom. It is a legal framework, signed on July 24, 2025, that aims to deepen trade and investment by reducing barriers and enhancing market access across goods, services, and professional mobility. The origin of the CETA lies in the Enhanced Trade Partnership (ETP) established on May 4, 2021, which set a goal to double bilateral trade by 2030. Negotiations for the CETA began in January 2022 and concluded after 14 rounds, with the agreement coming into effect on July 15, 2026.
The core mechanism of the CETA involves significant tariff liberalisation and commitments on services. The UK grants immediate zero-duty access on nearly 99% of India's tariff lines, covering almost the entire value of India's merchandise exports. In return, India offers tariff concessions on 89.5% of its tariff lines, covering 91% of UK exports, with phased reductions for sensitive sectors like automobiles and Scotch whisky. A key provision is the Double Contribution Convention (DCC), which exempts eligible Indian professionals working in the UK for up to five years from making dual social security contributions, benefiting an estimated 75,000 professionals. The CETA is India's first comprehensive trade agreement with a major Western country and is a broader economic integration framework, unlike India's earlier goods-led FTAs. It connects to concepts like Rules of Origin, Digital Trade, and Intellectual Property Rights, all covered in its 29 chapters. The agreement is expected to boost bilateral trade from $56 billion to $112 billion by 2030.