--- title: "India-UK Trade Pact Removes Tariffs on 99% | Model Diplomat" description: "India's trade pact with the UK scraps tariffs on 99 percent of exports, promising a major boost for Indian goods even as execution and CETA risks loom." url: "https://modeldiplomat.com/story/india-uk-trade-pact-removes-tariffs-on-99" --- # India-UK Trade Pact Removes Tariffs on 99% India gains zero-duty access to UK markets. Model DiplomatJune 23, 20263 min readAsia [The Indian ExpressFrom farms to factories, trade pact with the UK opens new opportunities in India | The Indian Express](https://indianexpress.com/article/opinion/columns/from-farms-to-factories-trade-pact-with-the-uk-opens-new-opportunities-in-india-10752503/)[GlobalbiznowIndia–UK CETA: Zero Duty Access Opens New Export Era](https://globalbiznow.com/economics/india-uk-ceta-zero-duty-export-opportunity/)[DailypioneerIndia-UK FTA: Exporters Urged to Upgrade Standards as CETA Opens New Trade and Investment Opportunities | Daily Pioneer](https://dailypioneer.com/news/slug-lite/upgrade-products-to-take-advantage-of-fta-with-uk-say-experts?year=2026) ## India-UK Trade Pact Removes Tariffs on 99% of Exports—Now Comes Execution Risk *India unlocks premium UK market with zero-duty access on textiles and manufacturing. The real test: whether exporters can actually scale production in time.* [The Indian Express](https://indianexpress.com/article/opinion/columns/from-farms-to-factories-trade-pact-with-the-uk-opens-new-opportunities-in-india-10752503/ "indianexpress.com") reports that India's Comprehensive Economic and Trade Agreement (CETA) with the UK comes into force on July 15, 2026—less than a year after being signed. The pact grants duty-free access to nearly 99% of Indian exports to Britain, eliminating tariffs on textiles, leather goods, processed foods, and auto components that previously faced duties as high as 70%. The deal also protects India's sensitive sectors—no concessions on dairy, cereals, or apples—while opening 137 services sub-sectors for Indian companies, from IT to healthcare and finance. This is **not a symbolic victory for India**. The tariff arithmetic is material. [Times Now](https://www.timesnownews.com/business-economy/economy/india-uk-fta-what-gets-cheaper-how-indian-exporters-will-benefit-article-154667751 "timesnownews.com") notes that duties on textiles will drop from 12% to zero, on leather from 16% to zero, and on processed foods from as high as 70% to zero. [Devdiscourse](https://www.devdiscourse.com/article/business/3936310-india-uk-trade-deal-to-take-effect-from-july-15 "devdiscourse.com") forecasts the deal will add £5.1 billion to India's annual GDP. Leather and footwear exports alone are projected to nearly double from $494 million in 2024 to $1 billion within three years. India also secured a win on steel: 85% of its steel exports will escape the UK's new steel safeguard measures that impose a 50% tariff on excess shipments. This required hardball negotiation—India had threatened to walk away on tariff concessions if the restrictions stuck. What matters now is **implementation speed and business readiness**. [Global Biznow](https://globalbiznow.com/economics/india-uk-ceta-zero-duty-export-opportunity/ "globalbiznow.com") frames the real constraint sharply: "CETA gives India an opening. It does not give India victory." [The Daily Pioneer](https://dailypioneer.com/news/slug-lite/upgrade-products-to-take-advantage-of-fta-with-uk-say-experts?year=2026 "dailypioneer.com") reports that experts are flagging a structural risk—Indian exporters must upgrade product standards and regulatory compliance to become reliable supply chain partners, not one-off suppliers. The UK's Department for Business and Trade has launched a roadshow in six British cities; India has announced no comparable outreach programme yet. Trade lawyer Rudra Kumar Pandey warned that "CETA-specific export-readiness programmes in manufacturing clusters across the country" are essential to convert market access into actual commercial activity. The secondary angle is strategic leverage. [Channel News Asia](https://www.channelnewsasia.com/world/india-uk-trade-deal-signals-modis-priorities-new-delhi-eyes-eu-us-pacts-5258506 "channelnewsasia.com") reports that the India-UK deal is Modi's template for future negotiations with the EU and US. But the US poses a harder test: President Trump is pressing India for agricultural and dairy market access—sectors India has made no concessions on. Former trade negotiator Ajay Srivastava told Reuters this UK deal signals a "policy shift" away from India's historical protectionism. That shift is real, but calibrated: auto tariffs drop gradually over 15 years under a quota system, and critical sectors remain closed. The social security agreement is a separate win. Indian professionals working in the UK will no longer pay dual social security contributions for up to five years. [Devdiscourse](https://www.devdiscourse.com/article/business/3936310-india-uk-trade-deal-to-take-effect-from-july-15 "devdiscourse.com") notes this exemption applies to over 75,000 Indian professionals and 900 companies already operating there. **What to watch**: July 1 is the hard deadline—the UK will publish the revised agreement details then. Whether India's government launches an export-readiness roadshow for small and medium enterprises is the first signal of commitment to uptake. The real indicator will come in Q4 2026: whether Indian shipments to the UK actually spike, or whether compliance and logistics barriers keep new exports bottlenecked. A $100 billion bilateral trade target by 2030 is the goal both sides have stated. Actual growth depends on whether India's exporters can move faster than competitors can copy. 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