Archive · 24 Jul 2025
India, UK Sign Trade Deal to Boost Commerce, Cut Tariffs
India and the UK have made a new trade deal.
This means some goods, like cosmetics and cars, will become cheaper in India.
Also, things India sells to the UK, like seafood and clothes, will be easier to sell there.
The deal allows professionals such as yoga instructors to temporarily work in the UK.
Both countries hope this will help them work together on things like business, defense, climate action and education.
The deal also sets up goals and plans for how they can achieve their hopes.
India and the UK signed a trade agreement, the India-UK Comprehensive Economic and Trade Agreement (CETA).
The deal will reduce tariffs on various goods, including cosmetics, medical devices, and automobiles.
Indian exports like seafood, textiles, and gems will enter the UK duty-free.
The agreement includes provisions for professional mobility and recognition of qualifications.
Both countries unveiled a strategic roadmap for cooperation through 2035.
- Who
- India and the UK.
- What
- A comprehensive trade agreement between India and the UK.
- When
- Signed on Thursday, with implementation expected in six months or more.
- Where
- Between India and the United Kingdom.
- Why
- To boost trade, investment, and cooperation between the two countries.
GTRI Concerns
Government Perspectives
Carbon Taxes
GTRI Concerns
Lack of a carve-out on the Carbon Border Adjustment Mechanism (CBAM) which may cause issues to India's carbon-intensive exports
Government Perspectives
N/A
Services
GTRI Concerns
The UK's offer on services is limited, with limited liberalization beyond select areas.
Government Perspectives
The UK's actions are acceptable.
Student Visas
GTRI Concerns
No post-study work visas for Indian students.
Government Perspectives
N/A
- Agreement Name
- India-UK Comprehensive Economic and Trade Agreement (CETA)
- Key Benefit for India
- Duty-free access for nearly 45% of exports to the UK
- Key Benefit for UK
- Reduced tariffs on goods like cosmetics and cars
- Automobile Import Quota (Year 1)
- 20,000 completely built units (CBUs)
- Liquor Tariff Reduction
- Halved over 10 years for products meeting a Minimum Import Price (MIP) threshold
- Professional Mobility
- 1,800 temporary visas for Indian professionals annually