The Comprehensive Economic and Trade Agreement (CETA) between India and United Kingdom will come into force on July 15, marking a new phase in economic diplomacy and opening the doors for diverse sectors for trade exchange between the countries.
The agreement is aimed at modernising bilateral engagement by integrating traditional goods and services with advanced disciplines like digital trade, telecommunications, financial services, intellectual property and—for the first time bilaterally—government procurement.
The agreement embeds forward-looking chapters on innovation, SMEs, sustainability and transparency to ensure inclusive growth. The deal is an important part of India and the UK’s economic partnership, as they hope to double bilateral trade to USD 100 billion by 2030. In the coming years, lower taxes on a number of British goods are expected to benefit Indian customers. Here’s what the list looks like:
Scotch whisky: Scotch whisky is one of the main winners of the deal. Premium Scotch brands may become less expensive in India as import levies on UK whisky are gradually reduced from 150 per cent to 40 per cent.
Luxury cars: Under a quota system, tariffs on some cars built in the UK will drop from 100 to 10 per cent.
Cosmetics & beauty items: In order to increase consumer choice and competition, import tariffs on a number of cosmetics and personal care items from the UK will either be withdrawn immediately or phased out over a ten-year period.
Premium food and specialty products: As duties are reduced, some imported food items from the UK may become more reasonably priced, albeit the effects will differ for various product categories. At the same time, the agreement on ‘Social Security’—also referred to as the Double Contribution Convention (DCC)—will also come into effect on July 15, reinforcing the mobility and competitiveness of Indian professionals in the United Kingdom.
Commerce & Industry Minister Piyush Goyal said the simultaneous enforcement of the CETA and the Double Contribution Convention will open up significant new opportunities for India’s exports. “By securing immediate duty-free access on 99 per cent of our tariff lines, we have systematically dismantled long-standing tariff walls. This will effectively level the playing field, allowing our textiles, leather, marine, engineering and processed food sectors to compete with no disadvantage and supply their world class products," Goyal added.
