India-UK Trade Pact Takes Effect July 15, Aims for $100 Billion by 2030
India and the United Kingdom's Comprehensive Economic and Trade Agreement (CETA) will come into force on July 15, 2026, according to an announcement by Commerce Secretary Rajesh Agarwal. The agreement, signed in London on July 24, 2025, in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer, aims to boost bilateral trade to $100 billion by 2030 from the current level of $55-60 billion.
Under the deal, Indian exports of textiles, leather and footwear, gems and jewellery, and plastics will enter the UK market with zero import duty from July 15. Additional Secretary in the Department of Commerce Darpan Jain said that sensitive segments, including small and mid-segment internal combustion engine vehicles and affordable electric vehicles, remain protected. This protection is intended to allow Indian manufacturers to strengthen their scale, technology, and global competitiveness.
India has also granted concessions on import duties of silver from the UK. In the financial year 2026, India imported silver bars worth $5.2 billion from the UK, accounting for 45% of its gold-silver imports. Gold bars, however, have not received any tariff concession.
The agreement includes provisions for Indian companies operating in the UK: they will be exempt from making social security contributions for up to five years for employees transferred from India. Currently, Indian employees and employers pay up to 23% of total salary to the UK's National Insurance System. Industry estimates suggest this will result in savings of $600 million for Indian businesses.
Commerce Secretary Agarwal described the pact as a defining moment in India's trade history, noting it covers 30 chapters including digital trade, government procurement, small and medium enterprises, innovation, labour, environment, and gender. He said Indian farmers will gain improved access to the UK's $90 billion agriculture market as import duties of up to 12% are eliminated on many products.
The agreement is expected to benefit India's labour-intensive sectors. Agarwal called it a win-win proposition for both sides, with India taking a leap in market liberalisation and policy coverage.
