India-UK CETA Enters into Force

The India-UK Comprehensive Economic and Trade Agreement (CETA) has come into force, providing 99% of India’s tariff lines duty-free access to the UK. The agreement regulates phased tariff reductions on select UK imports into India and mandates compliance requirements for Indian exporters in the UK market.

India-UK Comprehensive Economic and Trade Agreement (CETA):

Dimension	Key Details
Market access	The agreement provides 99% of India’s tariff lines duty-free access to the UK.
Indian exports	Nearly all Indian exports enjoy zero-duty access to the UK.
Fully built UK cars	Import duty on fully built UK cars is reduced from 110% to 10% over 10 years via a quota system.
UK car models	Petrol and diesel models get concessions immediately, and EVs, hybrids, and hydrogen vehicles get preferential access only from year 6.
Fully built trucks	Duty on fully built trucks is cut from 44% to 8.8% by year 5 within quota, and beyond quota, duty falls to 22% by year 10.
Scotch whisky	Duty on Scotch whisky is reduced from 150% to 75% immediately, and then to 40% over 10 years.
Gin	Duty on gin follows a similar path as Scotch whisky.
Other premium spirits	Duty on other premium spirits falls from 150% to 110% in year 1, and to 75% in year 10.
Consumer goods	Tariff reductions apply to chocolates, biscuits, soft drinks, cosmetics, perfumes, soaps, shaving creams, nail polish, salmon, and lamb.
Medical devices	Lower tariffs apply to UK healthcare equipment including surgical instruments, diagnostic tools, ECG systems, and X-ray systems.
Silver	Import tariff on silver is reduced to 0 over 10 years.
UK sectoral gains	The UK is expected to gain in the silver and aerospace sectors.
Luxury goods	Tariff cuts apply to select British fashion and lifestyle products.
Tariff reduction timeline	Tariff cuts on British goods are staggered over 5–10 years.
Compliance requirements	Indian exporters must meet the UK’s stringent food safety, traceability, and certification norms.