15 July 2026 marks UK-India Comprehensive Economic and Trade Agreement coming into force. This significant milestone aims to boost bilateral trade and partnerships between the two countries. A key component of CETA is the odd 64% UK tariff lines that will enter India duty-free henceforth. This number is expected to rise to 85% over the next decade with staged cuts taking effect. For UK businesses that are looking to tap into the Indian marketplace, CETA opens new opportunities not seen in decades <\/p>\n\n\n\n
The scale of the agreement is gargantuan by all measure. The UK Department for Business and Trade\u2019s impact assessment released its forecast and impact opportunity for the economy (see table below)<\/em>. <\/p>\n\n\n\n Source: UK Department for Business and Trade, UK\u2013India CETA impact assessment (24 July 2025); House of Commons Business and Trade Committee.<\/em><\/p>\n\n\n\n However, the real question is whether the trade deal will have a profound impact on UK business in the now. While a lot of commentary is surrounded on the \u201c99% duty-free\u201d figure, it must be kept in mind that most of it applies to Indian goods entering the UK. For products moving to India, the answers are a bit more nuanced and requires certain immediate actions like checking tariff lines and verifying whether corporate structures are aligned with duty reduction provisions. <\/p>\n\n\n\n While the process of UK businesses traditionally doing business directly in India i.e. UK company to Indian subsidiary or distributor, has been \u201csimple\u201d, it is expensive by all measure. It requires either reporting profits in the UK with 25% corporation tax or reporting it in India. This involves complying by India\u2019s corporate tax laws. Businesses also have to contend with transfer pricing scrutiny on the way in and dividend withholding on the way out. <\/p>\n\n\n\nThe CETA opportunity<\/strong> <\/th> Figure<\/strong> <\/th><\/tr><\/thead> UK\u2013India bilateral trade (2024 baseline)<\/strong> <\/td> \u00a343 billion <\/td><\/tr> Additional annual bilateral trade by 2040<\/strong> <\/td> \u00a325.5 billion <\/td><\/tr> Annual UK GDP uplift by 2040<\/strong> <\/td> \u00a34.8 billion <\/td><\/tr> Annual UK wage uplift by 2040<\/strong> <\/td> \u00a32.2 billion <\/td><\/tr> UK exporter tariff savings, first year<\/strong> <\/td> \u00a3400 million <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n \n Planning to Do Business in the UAE?\n <\/h2>\n\n