The Comprehensive Economic and Trade Agreement (CETA), and the Agreement on Social Security—also referred to as the Double Contribution Convention (DCC)— signed between India and the United Kingdom came into force on Wednesday (July 15, 2026).
"With the coming into force of the Comprehensive Economic and Trade Agreement and the Agreement on Social Security, our economic linkages are going to get even deeper. Together, these agreements translate our shared ambition into tangible opportunities for our people," Prime Minister Narendra Modi said.
"The CETA will give fresh momentum to our farmers, entrepreneurs and MSMEs. Several vibrant sectors will gain stronger access to the UK market. It will also deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indian talent. The social security agreement will provide invaluable support to Indian professionals working temporarily in the UK and strengthen the competitiveness of Indian enterprises," he added.
Under the CETA, India will reduce tariffs on a large number of British products over a phased period, while the UK will eliminate tariffs on almost all Indian exports.
Among the products that are expected to become cheaper in India are premium Scotch whisky and gin, as import duties on these products will be reduced in phases.
The tariff on whisky, currently 150 per cent, will be brought down to 75 per cent initially and further reduced to 40 per cent over the next decade, making imported British spirits more affordable.
Luxury automobiles manufactured in the UK are also expected to become less expensive. Import duties on a specified quota of British cars are set to decline gradually, potentially lowering prices of brands such as Jaguar Land Rover, Bentley, Aston Martin and Rolls-Royce.
Consumers may also benefit from lower prices on select British food and beverage products, including chocolates, biscuits, salmon, lamb, soft drinks and speciality packaged foods, as customs duties are eased under the agreement.
Certain cosmetics, medical devices and industrial machinery imported from the UK could also become more competitively priced over time.
On the export front, Indian products are expected to gain significantly from duty-free access to the UK market. Labour-intensive sectors such as textiles and garments, footwear, leather products, gems and jewellery, marine products, engineering goods, auto components, organic chemicals and processed food are likely to become more competitive, improving export opportunities for Indian manufacturers.
While cheaper imports may benefit consumers, the broader objective of the agreement is to expand two-way trade, create employment through higher exports and attract greater investment. The long-term impact on prices will depend on the pace of tariff implementation and the extent to which businesses pass on the benefits of lower import duties to consumers.
CETA, according to a press statement, was concluded on May 6, 2025, following fourteen intensive rounds of negotiations. The agreement was officially signed on July 24, 2025 in London by Union Minister of Commerce and Industry, Piyush Goyal, and the UK's Secretary of State for Business and Trade, Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer. To complete the framework, the companion DCC was subsequently signed on February 10, 2026.
(With inputs from ANI)