India-UK trade pact set to take off in first half of 2026, boosting exports and services

The India-UK Comprehensive Economic and Trade Agreement (CETA), expected to come into force in the first half of 2026 , promises to reshape trade between the two nations, offering clear benefits for both Indian exporters and UK consumers.

For Indian businesses , the deal opens up duty-free access for 99 per cent of products to the UK market . This is particularly significant for textiles, leather, marine products, gems and jewellery, toys , as well as high-growth sectors like engineering goods, chemicals, and auto components . Professionals in the IT sector will also benefit from easier mobility to the UK, allowing Indian services exports, which totaled USD 19.8 billion in 2023 , to grow further.

For UK goods , the agreement will make products like cars, whisky , and other consumer goods cheaper in India through tariff reductions . UK automakers could see increased sales as taxes on vehicles decrease, while Indian consumers may get better prices on popular imports.

The pact also carries a first-of-its-kind focus on women and gender , aiming to support woman-led businesses , particularly in West Bengal , which has one of the highest percentages of female entrepreneurs in India. This push comes at a time when protectionist measures by several countries and the non-functioning of the WTO have prompted India to aggressively pursue bilateral free trade agreements. The focus on women-led enterprises is expected to create jobs , empower artisans, and strengthen MSMEs , ensuring inclusive growth while leveraging new opportunities under the India-UK trade pact.

Overall, CETA is expected to double bilateral trade from USD 56 billion to USD 112 billion , making it easier for Indian exporters to reach global markets and for UK companies to expand in India. Beyond goods, the agreement emphasizes services, technology, and inclusive growth, aligning with the Vision 2035 roadmap for stronger India-UK economic ties.