With an aim to boost India-UK bilateral trade to $100 billion by 2030, Commerce Secretary Rajesh Agarwal has said that India and the UK will implement the Comprehensive Economic and Trade Agreement (CETA) from July 15, 2026. Bilateral trade in goods and services currently stands at around $55-60 billion. Under the agreement, several key Indian export sectors, including textiles, leather and footwear, gems and jewellery, and plastics, will gain duty-free access to the UK market from July 15.
To safeguard India's emerging clean mobility ecosystem, the country has not granted any tariff concessions on electric vehicles (EVs), hybrid vehicles, or hydrogen-powered vehicles during the first five years of the agreement's implementation. However, India has extended duty concessions on silver imports from the UK under the CETA. Silver bars, one of India's largest imports from the UK, accounted for nearly $5.2 billion in imports during FY26, representing about 45 per cent of India's global silver-bar imports. In contrast, gold bars, despite imports worth $111 million, have not been granted any tariff concessions, reflecting India's cautious approach towards precious metal imports.
The agreement also provides relief to Indian companies operating in the UK. Indian firms will not be required to make social security contributions for employees deputed to the UK for up to five years. At present, Indian employees and their employers contribute around 23 per cent of salaries to the UK's National Insurance System. The provision is likely to benefit more than 75,000 Indian workers and over 900 employers by exempting both employees and employers from these contributions during assignments of up to five years in the UK.
