India-UK Trade Agreement To Come Into Force Tomorrow

The comprehensive economic and trade agreement (CETA), which aims to boost mutual commerce between India and the United Kingdom to $100 billion by 2030, will come into force on July 15.

India and the UK's trade volume stands at $55-60 billion at present. "The target is that in the next 3-4 years, we will be able to reach USD 100 billion," said Commerce Secretary Rajesh Agarwal.

Per the deal, from July 15, India's textiles, leather and footwear, gems and jewellery and plastics exports will enter the British market with zero duty.

Sensitive segments, including small and mid-segment ICE (internal combustion engine) vehicles and affordable EVs, remain protected, said Additional Secretary in the Department of Commerce Darpan Jain. With this protection, Indian manufacturers can strengthen their scale, technology and global competitiveness.

Under CETA, New Delhi has also given concessions on import duties of silver from the United Kingdom.

In the financial year 2026, India imported silver bars worth $5.2 billion from the UK, which accounted for 45 per cent of its gold-silver imports.

Also read: 'Historic Milestone': India-UK Free Trade Pact To Come Into Force On July 15

Gold bars, on the other hand, haven't received any tariff concession.

The deal also entails sops for corporate India. Indian companies operating in the UK would not have to make social security contributions for up to five years for employees they move from India.

As of now, Indian employees and employers pay up to 23 per cent of the total salary to the UK's National Insurance System.

 Industry estimates suggest it will amount to savings of $600 million.

"The entry into force of the India-UK Comprehensive Economic and Trade Agreement (CETA) and the Double Contribution Convention on July 15, 2026, is a defining moment in India's trade history. This is one of the first FTAs of its kind, which establishes a future-oriented economic architecture between two major economies of the world," Agrawal said at a press conference in the national capital.

He said the agreement covers 30 chapters, including areas such as digital trade, government procurement, small and medium enterprises (SMEs), innovation, labour, environment and gender.

The officer said Indian farmers will gain improved access to the UK's $90 billion agriculture market.

As import duties up to 12 per cent will come down to zero, India's labour-intensive sectors stand to benefit from the agreement.

"All in all, it is a win-win proposition for both sides, with India taking a leap in terms of the extent of market liberalisation negotiated and the width of policy areas covered under the agreement," Agrawal said, according to ANI.

The agreement was signed on July 24, 2025, in London, in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer.