The trade agreement between India and the United Kingdom, formally the Comprehensive Economic and Trade Agreement (CETA), came into force on 15 July 2026. A separate social security agreement, the Double Contributions Convention, started on the same day. Trade between the two countries was worth £48 billion in 2025, and both governments expect the deal to add around £25.5 billion a year in the long run.
For diaspora businesses that buy, sell or hire across the two countries, this is the biggest change in years. Here is what it means in practice, and what you need to do to benefit.
The deal at a glance
- Indian goods into the UK: 99% of Indian exports now enter the UK duty-free.
- UK goods into India: India removes or cuts tariffs on 90% of its tariff lines. 64% became duty-free on day one, rising to 85% over time, with cuts phased over 5, 7 or 10 years.
- Services: new commitments on financial services (India’s first standalone chapter in a trade deal), professional services and digital trade.
- Government contracts: UK suppliers can now bid for Indian central government contracts, a market worth about £38 billion a year.
- Staff on assignment: employees sent between the two countries, and their employers, pay social security in only one country for up to 60 months.
Selling from the UK into India
Some of the largest cuts apply to products where Indian tariffs were very high. The UK government’s summary includes:
| Product | Before | Under the deal |
|---|---|---|
| Scotch whisky | 150% | 75% immediately, falling to 40% over 10 years |
| Salmon and cod | 33% | 0% immediately |
| Pharmaceuticals | about 11% | 87.6% duty-free from day one, the rest within 5 or 10 years |
| Medical devices | 8.25% to 13.75% | 0% after 10 years (some sensitive items phased down) |
| Aircraft parts | up to 11% | 0% |
| Electrical machinery | up to 22% | 0%, immediately or phased |
| Chocolate, biscuits, soft drinks | 33% to 55% | 0% within 10 years |
| Cars (petrol and diesel) | 100% or more | 30% to 50% at first, 10% from year 5, within a quota of 20,000 cars rising to 37,000 |
| Electric, hybrid and hydrogen cars | 100% or more | Quota access from year 6 at 40% to 50%, falling to 10% from year 10 |
Cosmetics, sports equipment and auto components also see tariffs removed or reduced, mostly over 5 to 10 years. Because many cuts are phased, check the rate for your exact product code and year rather than relying on headline figures.
Selling from India into the UK
With 99% of Indian exports now duty-free in the UK, labour-intensive sectors such as textiles and clothing, leather and footwear, gems and jewellery, marine products and engineering goods stand to gain the most, because they previously faced UK tariffs that competitors from some other countries did not. On the first day alone, Indian officials reported consignments worth more than $140 million shipped under the agreement.
Not everything is covered. India kept sensitive farm products, such as dairy, largely outside its tariff cuts, so check the schedules for food and agricultural goods in particular.
Services, contracts and business travel
- Financial and professional services: UK firms get equal treatment with Indian firms in the sectors covered. A process has been set up to negotiate mutual recognition of qualifications, starting with areas such as accounting, auditing and architecture. Recognition is not automatic yet.
- Digital trade: both sides commit to paperless trade and electronic contracts.
- Government procurement: UK suppliers can bid for Indian central government tenders. Firms sourcing more than 20% of their goods or services from the UK qualify as “Class II suppliers”.
- Business travel: there are new commitments on the temporary movement of business people, including IT specialists, financial services specialists, educators and yoga instructors. Normal visa rules still apply, so check the current requirements before you travel.
- Smaller businesses: a dedicated SME chapter sets up contact points in both countries, and customs aim to release goods within 48 hours.
Staff moving between the UK and India
Under the Double Contributions Convention, an employee sent temporarily from India to the UK, or from the UK to India, can stay in their home country’s social security system if the assignment is not expected to last more than 60 months. Before, many people ended up paying in both countries.
- From the UK: apply to HMRC for a certificate on form CA9107.
- From India: get a certificate of coverage from the Employees’ Provident Fund Organisation (EPFO).
- Not retrospective: people who were already on assignment before 15 July 2026 are not treated as detached workers, so their position may have changed. Check with your payroll adviser.
How to actually get the lower tariffs
The tariff cuts are not automatic. Your goods must meet the agreement’s rules of origin, which means they must be made in, or contain enough value from, India or the UK. Goods that are simply shipped through one country from somewhere else do not qualify.
- Find your product code (HS code) and check the preferential rate and the product-specific rule of origin for it.
- UK exporters: register once with HMRC’s origin registration service. You can then self-certify origin, and you include an origin declaration with each consignment so that your Indian buyer can claim the lower duty.
- Indian importers: India checks origin claims under its CAROTAR 2020 rules, so keep the origin declaration and supporting information. Records must be kept for five years.
- UK importers: claim the preference on your customs declaration and hold evidence that the goods qualify. If the claim fails later, the full duty can become payable retrospectively.
- Keep your supplier records. Bills of materials, supplier declarations and costings are what prove origin if customs ask.
Where to start
If you already trade between the two countries, check whether your products’ rates have changed and whether you are claiming them. If you have been waiting for the right moment, this could be it. On India Grows you can browse business deals from the Indian diaspora, post your own, and find professionals such as accountants and lawyers who work across both countries.
Official sources
- UK government: the UK-India trade deal
- GOV.UK: UK and India new social security agreement
- Government of India: Department of Commerce
Figures are from the UK government’s published summary of the agreement and GOV.UK guidance, as at October 2026.