Overview
- The India‑UK Comprehensive Economic and Trade Agreement became operational on July 15, 2026, giving nearly 99% of Indian export value zero duties into the UK and cutting or eliminating tariffs on a wide range of products.
- The pact is reciprocal and reduces tariffs on about 90% of UK exports to India while activating a social‑security pact that exempts Indian professionals on short UK assignments from dual contributions for up to five years.
- Officials reported immediate trade flows, with Commerce Secretary Rajesh Agrawal saying roughly USD 140 million of goods moved under the new rules on day one.
- Key limits and staged measures will shape outcomes: India kept many electric and hybrid vehicles out of the initial concessions, imposed tariff‑rate quotas for premium cars and alcohol, and both sides will use safeguards and phased cuts to protect sensitive industries.
- Labour‑intensive sectors such as textiles, leather, gems and processed foods stand to gain most but experts say exporters must meet UK quality, certification and rules‑of‑origin rules and improve logistics and buyer links before tariff cuts translate into lasting market share.