India-UK CETA takes effect: What it means for Indian exports, aluminium market and UK imports

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The Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom came into force today, giving Indian exports zero-duty access to 99 per cent of tariff lines in the UK market. The Agreement on Social Security, also known as the Double Contribution Convention (DCC), also took effect on the same day, supporting the mobility and competitiveness of Indian professionals working in the UK.

Speaking to the media in New Delhi, Commerce Secretary Rajesh Agrawal described the agreement as one of India's most comprehensive trade pacts, covering a wide range of sectors and reducing tariff and non-tariff barriers. He said CETA marks a new phase in trade and investment relations between India and the UK and reflects their commitment to a deeper strategic partnership.

The removal of UK import duties is also expected to support India's aluminium industry in the near term by improving access to a higher-value market. Downstream and value-added aluminium products could see the most immediate gains, as lower landed costs may make Indian exports more competitive.

UK buyers in the automotive, packaging, construction and engineering sectors may find Indian aluminium more attractive, particularly for lightweight applications and cost-sensitive sourcing.

Zero tariffs open more opportunities for Indian exporters

Under CETA, tariffs of up to 70 per cent on processed food products, more than 21 per cent on marine products, around 18 per cent on engineering goods and auto components, up to 16 per cent on leather and footwear, and around 12 per cent on textiles and clothing will be reduced to zero.

The tariff removal is expected to improve the competitiveness of Indian exports, create new opportunities for farmers, fishermen, MSMEs and manufacturers, and strengthen India's position in global value chains.

According to GTRI, Britain imported goods worth USD 928.9 billion in 2025, while India supplied just USD 15.2 billion, accounting for 1.6 per cent of the total. The gap highlights the scope for Indian exporters to expand their presence in the UK market if they improve competitiveness.

Processed food is one such opportunity. The UK imported USD 33.4 billion worth of processed food last year, while Indian exports stood at only USD 354 million, giving India a market share of 1.1 per cent.

India has, however, protected sensitive sectors under the agreement, including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products.

Beyond goods trade, the DCC focuses on easing the movement of professionals between India and the UK.

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DCC eases temporary UK assignments for Indian professionals

Under the Double Contribution Convention, eligible Indian professionals on temporary assignments in the UK will be exempt from paying social security contributions there for the specified period. Agrawal said the arrangement will benefit both workers and their employers.

Rishi Srivastava, Co-founder of Offgrid Energy Labs, said, "India and Britain have long been natural partners in ideas and enterprise; this agreement finally gives that partnership a modern economic spine. Most of the attention will land on tariffs, but for a deep-technology company the quieter provision matters more: an agreement that lets engineers and specialists move between India and Britain without paying twice over is an agreement that lets companies like ours build teams across both economies."

The agreement is also expected to provide greater regulatory certainty for Indian service providers in information technology, financial services, healthcare and education. Business visitors and intra-company transferees are expected to benefit from clearer and more predictable mobility provisions.

Designed as a people-centric agreement, the implementation of CETA and the DCC is expected to create new opportunities for Indian exports and support India's journey towards becoming a more globally integrated, resilient and competitive economy.

The impact will also extend to British products entering India as tariffs are gradually reduced under the agreement.

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What could become cheaper under the India-UK CETA

CETA will lower import duties on a range of UK products over the coming years. While many tariff reductions will be phased in, several British goods could become more competitively priced in India.

Import duties on premium UK-made cars will gradually fall from as high as 110 per cent to 10 per cent under a quota-based system over five years.

Tariffs on Scotch whisky and gin will also be reduced in phases, potentially making premium spirits more competitively priced.

Selected British luxury goods, including fashion and lifestyle products, could become more affordable as duties decline. Some UK-made cosmetics and personal care products are also expected to face lower import tariffs.

Reduced tariffs could lower the cost of certain imported medical devices, while selected UK food and beverage products may become more competitive in India as trade barriers ease.