India–UK Trade Relations: How CETA 2025 Redefines Bilateral Growth

On 24 July 2025, India and the United Kingdom (UK) signed the Comprehensive Economic and Trade Agreement (CETA), marking a historic shift in their economic partnership. This landmark agreement aims to double bilateral trade from USD 56 billion to over USD 100 billion by 2030, positioning both nations for inclusive growth, innovation, and expanded market opportunities.

This insight addresses these questions with verified data and actionable perspectives for businesses.

India–UK Trade relations symbolized by the Red Fort in India and Big Ben in the United Kingdom, representing bilateral growth and partnership.

Key Highlights of the India–UK CETA 2025

Tariff Reductions Across Sectors

Duty-free access for 99% of India’s exports to the UK, benefiting textiles, leather, gems & jewellery, and automotive components.
Tariffs on UK goods like whisky, gin, and automotive parts reduced from 150% to 75% initially, with a target of 40% over the next decade.

Boost to Services Sector

Simplified visa processes for professionals, enhancing mobility in IT, finance, and consulting sectors.
Collaboration in digital trade and innovation fosters co-creation of tech-driven solutions.

Support for MSMEs

Tariff reductions on advanced manufacturing equipment.
Creation of MSME contact points in both nations for smoother cross-border partnerships.
Push for paperless trade systems and digital compliance frameworks.

Strategic Long-Term Impact

Establishes a framework beyond tariff cuts: innovation, sustainable trade, and responsible business practices.
Anchored in shared democratic values, the pact supports Vision 2035 for a dynamic, resilient partnership.

Business Opportunities Emerging Post-CETA

Textiles & Apparel: India’s exporters gain a competitive edge with duty-free UK market access.
Spirits & Alcoholic Beverages: UK whisky brands find cost advantages in India with reduced tariffs.
Digital & IT Services: Expanded opportunities for Indian IT and consulting firms to scale in the UK.
Automotive Components & Engineering Goods: Growth in bilateral supply chains for EV and advanced engineering sectors.

Conclusion:

The India–UK CETA 2025 goes beyond trade liberalization — it is a catalyst for innovation, MSME growth, and cross-sector collaboration. Businesses leveraging this pact can tap into new markets, optimize supply chains, and create sustainable competitive advantages.

As CEPA continues to drive bilateral trade, Crescendo Worldwide remains committed to empowering global businesses to enter, expand, and thrive in the UAE and Indian markets.

Crescendo Worldwide, with its expertise in FDI promotion and trade facilitation, supports companies in navigating opportunities arising from this agreement, ensuring seamless market entry and growth strategies.