Day One, $140 Million! India's New UK Trade Deal Delivers Instant Export Boom

India's newly operational Comprehensive Economic and Trade Agreement (CETA) has got off to a strong start, with goods worth more than USD 140 million exported to the United Kingdom at zero duty on the very first day of the landmark trade pact coming into force. The impressive opening is being seen as a major boost for Indian exporters and a significant milestone in strengthening economic ties between the two countries.

Addressing exporters and industry representatives, Commerce Secretary Rajesh Agrawal described the agreement as one of India's most ambitious trade deals, noting that it was finalised after more than 800 technical sessions and 14 formal rounds of negotiations . He said the pact brings together two complementary economies and is expected to create long-term opportunities for trade, investment and manufacturing.

On the first day alone, more than 50 export consignments valued at over USD 140 million were flagged off from over 20 ports, airports , Inland Container Depots (ICDs), Special Economic Zones (SEZs) and manufacturing units across India. The shipments included electronics, pharmaceuticals, textiles, leather goods, footwear, engineering products, marine products, plastics, base metals, and gems and jewellery. Major export hubs such as Mundra, Nhava Sheva, Chennai, Mumbai, Kolkata and Hyderabad handled the consignments.

The agreement provides duty-free access to nearly 99 per cent of Indian exports to the UK. Many of these products earlier attracted import duties ranging from 2 to 16 per cent , and the removal of these tariffs is expected to improve the competitiveness of Indian goods while opening new opportunities for exporters across several sectors.

The Department of Commerce will work with export promotion councils and industry bodies to help businesses, especially MSMEs and manufacturing clusters, make full use of the agreement's benefits.

British High Commissioner Lindy Cameron said the trade pact is expected to increase annual bilateral trade by more than GBP 25 billion over the long term and contribute nearly GBP 5 billion annually to the GDP of both countries.

The agreement also gives Indian suppliers access to the UK government procurement market worth around GBP 90 billion , while the government said India's MSMEs and strategic sectors remain protected through built-in safeguards . Officials clarified that state government procurement is outside the agreement's scope and that minimum contract value thresholds will apply for UK firms.

On Intellectual Property Rights (IPRs) , officials said the pact does not restrict India's right to issue compulsory licences in exceptional public health situations. Regarding the proposed UK Carbon Border Adjustment Mechanism (CBAM) , India said discussions are continuing and that it will seek suitable adjustments if future carbon taxes adversely affect Indian exports.

With a strong first-day export performance, wider duty-free market access and safeguards for domestic industries, the India-UK CETA is expected to strengthen exports, investment and long-term economic cooperation between the two nations.