Kishore Jayaraman, Group CEO of the UK India Business Council (UKIBC), expressed strong optimism about the India-UK Comprehensive Economic and Trade Agreement (CETA), stating he remains 'very bullish' about India and the UK being a 'formative force into the future' as a result of the pact. According to Business Standard, there is already 'euphoria' within industry over the possibilities opened up by the agreement, with economic growth for both countries being an inevitable outcome of the pact coming into force this month. Jayaraman emphasized that 'India offers capacity and capability, so scalability for businesses that want to scale up in the Indian market just gets that much easier', particularly benefiting SMEs, startups, and creative people to scale through India's capabilities and reach the next level of their businesses.
The finance ministry has notified rules for determining the origin of goods under the India-UK trade pact, clearing the way for the agreement's implementation from July 15, 2026. According to PTI, the rules, notified by the Central Board of Indirect Taxes and Customs (CBIC), establish the framework for identifying products eligible for preferential tariff treatment under the agreement and set out compliance requirements for exporters and importers. The notification states that 'These rules may be called the Customs Tariff (Determination of Origin of Goods under Comprehensive Economic and Trade Agreement between India and the United Kingdom of Great Britain and Northern Ireland) Rules, 2026. They shall come into force on the 15th July, 2026.' The certificate of origin is a crucial document needed for exports to avail duty benefits under India's trade agreements, ensuring that goods from third countries do not wrongly avail themselves of the preferential tariff benefits offered under the India-UK trade pact.
Total bilateral trade between India and the UK hit 47.9 billion pounds in the four quarters ending in 2025, representing a 10 per cent increase from previous years, as reported by Business Standard. Analysts have projected that the CETA can double trade by 2030, significantly expanding the current trade relationship. The India-UK Comprehensive Economic and Trade Agreement (CETA) secures duty-free access for 99 per cent of India's exports to the UK, covering nearly the entire export basket. The agreement is expected to benefit labour-intensive sectors including textiles, leather, footwear, marine products, sports goods, toys, and gems and jewellery, with industries such as engineering goods, auto components and organic chemicals also gaining from improved market access.
UKIBC chief Kishore Jayaraman identified advanced manufacturing and engineering, energy and infrastructure, financial services, and digital and artificial intelligence as the top sectors benefiting from the CETA implementation. According to Business Standard, he also highlighted healthcare and life sciences as key beneficiaries, along with education, food and beverage, and startups. Jayaraman noted that 'there's a lot of opportunity here for this agreement to enhance the trade between the two nations' across multiple sectors including food and beverage, education, digital technologies, energy and infrastructure. The Double Contribution Convention, which prevents temporary cross-border workers from having to pay social security contributions in both countries, is expected to further impact growth by allowing greater productivity, efficiency, and mobility for employees.
The India-UK Free Trade Agreement (FTA) is set to come into effect on July 15, 2026, bringing significant benefits for Scotch whisky consumers. Import tariffs on whisky and gin will be cut from the current 150% to 75% initially, then to 40% by the 10th year of the deal. According to Mint, consumers may see initial retail benefits of roughly 5-10%, which may translate into a few hundred rupees per bottle. However, the actual savings will vary across states, with high-tax states like Maharashtra seeing only 5% price cuts while lower-tax states like Haryana could see up to 15% reductions. Bottled-in-origin Scotch whiskies will see the biggest impact, with premium brands like Johnnie Walker Black Label and Chivas Regal potentially dropping from ₹3,888 to ₹3,499-₹3,694 per bottle. Consumers may have to wait six months to a year before seeing cheaper bottles as importers clear old inventories and register new prices, though the trend is expected to benefit both consumers and domestic industry participation.
