India-UK trade deal comes into effect: What’s cheaper in each country now?
Summary
India and the United Kingdom have started a new trade deal called the Comprehensive Economic and Trade Agreement (CETA). This deal reduces taxes on many goods and opens up services and markets for both countries, aiming to increase trade and business opportunities.Key Facts
- The trade agreement came into effect on a Wednesday (recently).
- Indian exporters can now send many products to the UK without paying taxes, especially in textiles and other labor-intensive industries.
- The UK will gradually reduce taxes on products like cars and also grant quotas to access Indian markets.
- The UK removed tariffs on about 97% of its traded goods with India immediately.
- India will remove taxes on 64% of tariff lines right away and gradually remove tariffs on another 21%, excluding sensitive items.
- India exported $13.44 billion worth of goods to the UK in the financial year 2025-26, while importing $11.68 billion.
- Services trade between the two countries was $35.44 billion in 2024, with India having a surplus of nearly $7.9 billion.
- The deal helps professionals move temporarily to the UK without paying National Insurance for five years, benefiting over 75,000 professionals and 900 companies.
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