India’s exports to UK hit $140 million on first day of trade pact | Today’s news
New Delhi: India exported over $140 million worth of goods to the UK on the first day of implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA), Commerce Minister Rajesh Agarwal said on Wednesday.
India and the United Kingdom are targeting $100 billion in bilateral trade by 2030 under an agreement signed in July 2025 to deepen bilateral trade and investment as well as facilitate the movement of experts between the two countries. Bilateral merchandise trade stood at $25.12 billion in FY26, with India’s exports to the UK exceeding imports by $1.76 billion, according to Commerce Department data.
Speaking at a ceremony in New Delhi to mark the occasion in the presence of industry representatives and British High Commissioner Linda Cameron, Agarwal said the next milestone in a year’s time will be to assess how the agreement has changed the lives of people in both countries through increased business and economic opportunities.
Quick answers to key questions
•5 QUESTIONS
CETA is a trade agreement aimed at reducing tariffs, expanding market access and strengthening economic cooperation between India and the UK, effective from July 2025.
CETA gives Indian exporters duty-free access to 99.5% of their exports to the UK, significantly increasing the competitiveness of sectors such as textiles and agriculture.
Sensitive sectors, including agriculture and strategically important industries, were protected by eliminating or gradually reducing tariffs to protect domestic producers from competition.
Consumers may see lower prices on products such as Scotch whisky, premium British cars and selected groceries as tariffs are reduced under CETA.
CETA is expected to boost bilateral trade between India and the UK to US$100 billion by 2030, enhancing economic opportunities and cooperation in various sectors.
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Under the deal, Indian exporters will get duty-free access to 99.5% of the value of Indian exports to the UK, which will cover 98.8% of tariff items, effectively eliminating tariffs across a range of labour-intensive and manufacturing sectors. In turn, India has offered preferential market access covering 89.4% of the value of UK exports, with tariff reductions being phased in for sensitive products.
Prime Minister Narendra Modi hailed the launch of the trade pact as a significant moment in the India-UK partnership.
“With the entry into force of the Comprehensive Economic and Trade Agreement and the Agreement on Social Security, our economic ties will deepen. Together, these agreements translate our shared ambitions into tangible opportunities for our people,” Modi wrote on X.
Fresh dynamics
He added that CETA will give a new impetus to Indian farmers, entrepreneurs and small and medium enterprises. Several vibrant industries will gain stronger access to the UK market. The trade agreement will also deepen cooperation in technology, professional services and innovation, while promoting greater mobility for skilled Indian talent.
“The Social Security Agreement will provide invaluable support to Indian professionals working temporarily in the UK and will strengthen the competitiveness of Indian businesses,” he added.
Meanwhile, Agarwal said certificates of origin rules are being issued and customs facilitation is being provided to ensure smooth functioning of the trade pact.
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Highlighting the strength of bilateral ties, Cameron noted that India was the UK’s eleventh largest trading partner in 2025, with bilateral trade approaching £48 billion a year. She also noted that the investment relationship between the two countries supports more than 700,000 jobs.
She said the agreement provides a framework that will allow businesses in both countries to trade more, invest more, innovate more and grow together. She described it as a decisive step towards a broader, more ambitious and forward-looking partnership.
Referring to its long-term economic impact, Cameron said the deal is expected to boost bilateral trade by more than £25bn a year in the long term and add almost £5bn a year to the UK and India’s GDP.
SC Ralhan, President, Federation of Indian Export Organizations (FIEO), said the entry into force of the India-UK Free Trade Agreement marks a historic milestone in India’s export journey.
“The India-UK Free Trade Agreement is expected to enhance the global competitiveness of Indian products by allowing exporters to access the UK market on more favorable terms. It will strengthen the position of India’s labour-intensive industries, many of which are dominated by small and medium-sized enterprises, thereby promoting employment, rural livelihoods and inclusive economic development,” Ralhan added.
More than a pact
Chandrajit Banerjee, CEO of the Confederation of Indian Industry (CII), said the operationalization of India-UK CETA was more than just the launch of a trade deal. It is a strategic move to strengthen India’s global competitiveness, expand economic opportunities and support the country’s Viksit Bharat 2047 vision.
“For Indian industry, CETA opens a new era of opportunity. Duty-free access for 99% of India’s exports to the UK will significantly boost the competitiveness of labour-intensive industries such as textiles and apparel, leather and footwear, gems and jewellery, marine products and processed food, while creating new opportunities for engineering goods, automotive, value-added and other value-added industries.”
Read also | India’s pact with Great Britain is a great leap forward in terms of more than just trade ties
“What truly sets this landmark agreement apart is its depth and ambition, as it transcends the traditional boundaries of tariff liberalization and creates a future-proof, modern framework for cooperation in trade in goods and services, intellectual property, digital commerce, financial services, telecommunications and government procurement – the latter being a breakthrough,” said Anil Talreja, Partner and Head of Trade Corridor, Deloitte South Asia.
Maj Gen (Retd) Rajesh Chopra, CEO, Indian Malt Whiskey Association welcomed the implementation of the India-UK trade pact.
“The gradual reduction in duty on Scotch whisky, from 150% to 75% now and further to 40% over ten years, is a calibrated and sensible approach. It gives Indian consumers access to world-class spirits at fairer prices, while providing a clear and predictable path for domestic producers. Indian single malts today stand side by side with the best, most assured applications in the world and we are confident in India expanding the premium category for all the players,” he said.
