India‑U.K. Comprehensive Economic and Trade Agreement (CETA) – Overview
On 15 July 2026 the CETA became operational. The deal goes beyond a simple tariff cut; it aligns two large democracies to reshape trade, technology and investment ties in a changing global order.
Key Developments
- Zero‑duty access for 99% of Indian exports to the U.K., covering textiles, leather, footwear, marine products, gems & jewellery, engineering goods and chemicals.
- Tariff‑rate quota (TRQ) arrangements for electric vehicles, with phased tariff reductions.
- Protection mechanisms for Indian steel exports amid new U.K. steel measures.
- Opening of U.K. government procurement markets to Indian firms, especially in infrastructure and consulting.
- Enhanced services mobility for Indian IT, education, healthcare, finance and professional service providers.
- Provision for U.K. educational institutions to set up campuses in India.
- Modern clauses on digital trade, labour, gender, IP and innovation to attract fintech and green‑tech investments.
Important Facts
The agreement is part of the broader Vision 2035. Both sides have set a target to double bilateral trade to **over $100 billion by 2030**. The U.K. already ranks as India’s sixth‑largest investor, accounting for about **5 % of cumulative FDI equity inflows since April 2000**.
Sector‑wise, the zero‑duty benefit removes tariffs that ranged from **70 % on processed foods** to **12 % on textiles**. Sensitive sectors such as agriculture and dairy retain safeguards, while services and professional mobility are expanded to support India’s ambition as a global services hub.
Exam Relevance
Understanding Atmanirbhar Bharat is crucial for GS‑3 questions on economic reforms. The CETA complements Make in India and Digital India by providing larger markets and smoother se