The U.K.-India trade agreement will support both countries’ economic diversification efforts, though regulatory and carbon costs will limit some gains for India. The India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) officially entered force on July 15, nearly a year after it was signed by former U.K. Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi. The agreement reduces tariffs on thousands of goods and expands market access for services, firms and professionals, with the aim of increasing bilateral trade from $56 billion in FY2024-25 to $100 billion by 2030. Under the deal, 99% of Indian exported goods will now enter the United Kingdom duty-free, including textiles, leather, jewelry, agricultural products and automotive components, which previously faced tariffs ranging from 2-18%. India, meanwhile, will reduce tariffs on 91% of U.K. exports, with 85% of British goods set to become duty-free within ten years. The agreement also expands access for…
