The India-UK Comprehensive Economic and Trade Agreement (CETA), which will come into effect on July 15, is expected to provide a major boost to a wide range of sectors. Experts say the immediate duty-free access secured under CETA will significantly enhance the competitiveness of Indian exports in the UK market. They believe the agreement will generate new opportunities for farmers, fishermen, workers, MSMEs (micro, small, and medium enterprises), and manufacturers, while also strengthening India’s integration into global value chains.
India-UK bilateral merchandise trade rose to $23.1 billion in FY25 from $21.3 billion in FY24, marking a year-on-year growth of about 8.5%. India’s merchandise exports to the UK increased from $12.9 billion to $14.5 billion during the period, while merchandise imports rose from $8.4 billion to $8.6 billion, leaving India with a trade surplus of $5.9 billion in FY25. For FY26, merchandise bilateral trade stood at $15.31 billion up to November 2025. India’s major exports to the UK include electrical machinery, industrial machinery, mineral fuels, gems and jewellery, and pharmaceuticals, while key imports comprise precious stones and metals, machinery, electrical equipment, and iron and steel.
