India-UK trade pact expected to come into force by first half of 2026: British envoy

The India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to be implemented in the first half of 2026, marking a new era in partnership between the two nations, British Deputy High Commissioner Andrew Fleming said.

Speaking to PTI, he described the pact as the most "comprehensive and ambitious" deal negotiated by both governments.

He noted that the agreement, which spans approximately 20,000 pages, is designed to offer opportunities for businesses of all sizes, particularly for exporters in West Bengal and the 12 states across East and Northeast India.

"This free trade agreement is the most comprehensive and ambitious agreement that my government has negotiated. I think the same probably would apply for the Indian government too," Fleming said, urging regional businesses to begin preparations immediately to harness the upcoming benefits.

India inked the Comprehensive Economic and Trade Agreement (CETA) with the UK on July 24. It is the country's most ambitious trade agreement till date, covering 26 sectors from tariffs to technology. The pact is aimed at doubling bilateral trade in goods and services to $112 billion from $56 billion at present.

Asked about the timeline for the roll-out of the agreement, Fleming stated, “I mentioned the first half of 2026 is our hope and expectation. So we're getting closer and closer." Under the CETA, Indian exporters will gain duty-free access for 99% of their products to the UK market, covering nearly 100% of the trade value.

This includes labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, and toys, as well as high-growth sectors like engineering goods, chemicals, and auto components.

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The agreement is also expected to benefit UK goods, such as whisky, through tariff rationalisation. Beyond goods, the pact addresses services—a core strength of the Indian economy.

India exported over $19.8 billion in services to the UK in 2023, and the new framework promises to expand this through enhanced mobility for professionals across the IT sector.

A unique feature of the CETA is the inclusion of a first-of-its-kind chapter on women and gender.

The British deputy high commissioner to Kolkata highlighted that this provision is particularly significant for West Bengal, which accounts for the highest percentage of woman-led businesses in India at 23%.

This focus is expected to spur large-scale employment and empower artisans and MSMEs.

The deal aligns with the 'Vision 2035' roadmap for deeper ties, covering information technology, financial services, education, telecom, and engineering.

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Union Commerce and Industry Minister Piyush Goyal has previously noted that the free trade agreement would serve as a catalyst for inclusive growth, benefiting farmers, artisans, and innovators while safeguarding India’s core interests and accelerating its journey towards becoming a global economic powerhouse.