UK–India CETA: Unlocking a New Era of Opportunity for Regional Businesses

By Siddharth Mukne

Founder & Managing Director

Ergo Europe Ltd

15th July 2026 will stand as a historic milestone in UK–India relations, not only for trade, but

for the broader strategic partnership between the two nations. This agreement marks a

decisive step forward in deepening economic, political, and institutional ties.

For businesses, it represents a new era of liberalisation, unlocking significant opportunities

through substantial tariff reductions across a wide range of products and services.

The agreement is known as the Comprehensive Economic & Trade Agreement (CETA) for a

reason.

Its scope extends far beyond a traditional tariff-cutting FTA. It encompasses goods,

services, digital trade, intellectual property, labour, gender, environment, government

procurement, temporary movement of professionals, and much more. The breadth of this

pact reflects its strategic importance and the ambition shared by both governments.

I am proud to have played even a modest part in the FTA process. It is deeply rewarding to

see the agreement come into force in a way that responds to the questions, expectations,

and recommendations raised by businesses across the country, insights I had the privilege

of gathering before negotiations commenced.

It is important for businesses to understand that this agreement is not limited to tariff

reductions on whisky or luxury cars. A much wider range of products and services will

benefit.

For example:

• Chocolate tariffs will fall from 33% to 0% over seven years.

• Tariffs on medical devices will drop from 13.75% to 0% immediately.

• Mechanical machinery tariffs will reduce from 8% to 0% with immediate effect.

In total, 64% of UK goods will receive duty-free access from day one, rising to 85% within ten years, with phased reductions for sensitive sectors.

Beyond tariffs, the agreement introduces major improvements to trade facilitation.

Indian customs will be required to clear goods within 48 hours of arrival, accelerating supply chains and helping UK products reach the Indian market more quickly.

Perishable goods will receive priority clearance to minimise spoilage, a significant

advantage for exporters of food, drink, medicines, and cosmetics.

The introduction of a single window system, an online portal for traders to submit all border

documentation will streamline interactions with border agencies and reduce the cost of

trade.

Another transformative opportunity lies in direct access to India’s government procurement

market. The UK has secured an unprecedented procurement chapter, providing legally

guaranteed access to parts of India’s substantial public procurement ecosystem.

With India spending an estimated 20% of its GDP on public procurement, UK suppliers will

now have improved opportunities to bid for contracts on clearer, more favourable terms.

To support businesses in navigating these opportunities, Ergo Europe has established an

India Trade Desk in partnership with the Chamber of Commerce across regions, creating a

dedicated platform for regional businesses to access right information, market insights, and on-the-ground support.

This initiative brings together major trade organisations through a single window and has

received strong backing from the Department for Business & Trade and the High

Commission of India.

Ultimately, a policy delivers value only when businesses choose to engage with it.

The opportunities unlocked through CETA are real, immediate, and already gathering

momentum but they will translate into tangible growth only if UK companies take proactive

steps to understand the provisions and position themselves to benefit.

This agreement marks a new phase in UK–India economic cooperation, and with the right

awareness and coordinated support, businesses across our region can convert this

moment into sustained commercial success, contributing not only to their own growth but

to the wider prosperity of the region and, in time, the nation.

For an introduction to Siddharth, please email: International@GMChamber.co.uk