India exported more than $140 million worth of goods to the UK on the first day of the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA) on Wednesday, according to commerce secretary Rajesh Agarwal. The agreement aims to enhance bilateral trade and investment, with a target of reaching $100 billion in trade by 2030.
Key Details
CETA, which was signed in July 2025, is designed to reduce tariffs, expand market access, and improve economic cooperation between the two countries. Under the agreement, Indian exporters will benefit from duty-free access for 99.5% of their exports to the UK, significantly boosting competitiveness in sectors such as textiles and agriculture. Sensitive sectors, including agriculture, have been protected through exclusions or phased tariff reductions to shield domestic producers from increased competition.
Background
Agarwal noted that the next milestone will be a review in one year to assess the impact of the agreement on trade and economic opportunities for both nations. The bilateral trade in goods was recorded at $25.12 billion in FY26, with India's exports exceeding imports by $1.76 billion, according to data from the commerce ministry. The agreement is expected to lead to lower prices for consumers on products such as Scotch whisky and premium British cars as tariffs are reduced.
The rollout of CETA is likely to benefit Indian exporters, particularly in textiles and agriculture, by enhancing their market access to the UK. This could lead to increased trade volumes and potentially lower prices for consumers in both countries due to reduced tariffs.
Watch for the upcoming review in one year to evaluate the transformative effects of CETA on trade between India and the UK.