Published: 16 Jul 2026
Indian Exporters Get Zero-Duty Access to UK Market as India–UK CETA Enters Into Force
REGULATORY INTELLIGENCE
REGULATORY UPDATE | PIB RELEASE ID 2285085, DATED 15 JULY 2026 | EFFECTIVE 15 JULY 2026
The India–United Kingdom Comprehensive Economic and Trade Agreement (CETA), together with the Agreement on Social Security (Double Contribution Convention), has formally entered into force. The Ministry of Commerce & Industry confirmed that the Agreement provides zero-duty market access for nearly 99% of India’s exports to the UK, with trade facilitation measures, including a new digital Certificate of Origin process, already operational to let exporters claim benefits from day one.
The Agreement entered into force on 15 July 2026, following the decision taken by the leaders of both countries at the G7 Summit in France thirty days earlier, with all requisite notifications, Rules of Origin arrangements, and customs preparedness measures in place from the first day of implementation.
WHAT’S NEW?
1. Tariff Access — Standard Duties to Zero-Duty for Nearly All Indian Exports
Prior to CETA, Indian exports to the UK were subject to standard Most Favoured Nation (MFN) duty rates. Under the Agreement, Indian businesses now get duty-free access on around 99% of tariff lines, covering nearly all Indian exports to the UK, with corresponding tariff reductions or eliminations on 90% of tariff lines for UK exports into India, covering 92% of current UK export value.
2. Certificate of Origin — Manual Certification to Self-Certified eCoO 2.0
There was previously no CETA-specific certification mechanism, since the Agreement itself did not exist. With entry into force, the first Certificates of Origin under CETA have been issued through the eCoO 2.0 platform on a self-certification basis, reducing compliance burdens and transaction costs, particularly for MSME exporters.
3. Social Security Contributions — Dual Payments to Exemption Under the DCC
Indian professionals on temporary assignments in the UK were previously liable for social security contributions in both jurisdictions. Under the Agreement on Social Security, such professionals are now exempted from double social security contributions for a period of up to five years, directly reducing costs for Indian employers and posted workers.
4. Services and Mobility — Limited Coverage to Expanded Market Commitments
India’s earlier trade arrangements with the UK did not include comprehensive services commitments. CETA now extends coverage to IT, professional, financial, education and business services, and expands mobility provisions for Indian talent, alongside cooperation on customs, digital trade, telecommunications, and intellectual property.
| Parameter | Before CETA | After CETA (From 15 July 2026) |
|---|---|---|
| Tariff access for Indian exports | Standard MFN duties applicable | Zero-duty access on ~99% of tariff lines |
| Tariff access for UK exports to India | Standard MFN duties applicable | Reductions/elimination on 90% of tariff lines (92% of UK export value) |
| Certificate of Origin process | Not applicable under CETA | Self-certification via eCoO 2.0 platform |
| Social security for posted workers | Dual contributions in India and UK | Exempted for up to 5 years under the DCC |
WHY THIS MATTERS
A Comprehensive Economic and Trade Agreement is a binding bilateral treaty that reduces or eliminates tariffs and non-tariff barriers between two countries, while also setting common rules on services, investment, and regulatory cooperation. CETA is described by officials as going beyond India’s previous free trade agreement precedents in both width and depth of coverage, with services commitments carrying particular weight given that services account for over 50% of India’s GDP and over 70% of the UK’s GDP.
This shift creates both opportunities and compliance obligations for businesses, particularly those facing:
- Export operations in textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed foods, where duty elimination directly affects landed cost competitiveness
- A need to establish Rules of Origin compliance and documentation to qualify for preferential tariff treatment under CETA
- Unfamiliarity with the eCoO 2.0 self-certification process for Certificates of Origin, particularly among first-time UK exporters
- Cross-border employee deployment to the UK, where social security cost planning must now account for the DCC exemption
- Services-sector businesses seeking to leverage new market access commitments in IT, finance, and professional services
BUSINESS IMPACT
- Exporters in covered sectors can immediately claim zero or reduced duty on qualifying shipments to the UK.
- MSMEs benefit from a simplified, self-certified digital process for obtaining Certificates of Origin.
- Employers posting staff to the UK can avoid duplicate social security contributions for up to five years.
- Services exporters gain clearer market access commitments across IT, financial, and professional services.
- Businesses should verify Rules of Origin compliance before claiming preferential tariff treatment.
CONCLUSION
The entry into force of the India–UK CETA and the accompanying Agreement on Social Security marks a significant expansion of preferential trade access and workforce mobility between the two countries, with benefits already being claimed on exports worth over USD 140 million on the first day. Businesses engaged in India–UK trade should review their eligibility under the Agreement’s Rules of Origin, register for Certificate of Origin issuance through eCoO 2.0, and assess their exposure to the Double Contribution Convention for any UK-posted employees.
HOW OMEGA QMS CAN HELP
At Omega QMS, we help businesses navigate India’s evolving regulatory framework, including BIS certification, customs regulations, import-export procedures, QCO compliance, and free trade agreement compliance, including Rules of Origin and Certificate of Origin processes. If your business requires assistance with CETA eligibility assessment or eCoO 2.0 certification, our experts can help ensure timely and seamless compliance.
SOURCES
Primary Source
Press Information Bureau, Government of India — “India–UK CETA and Agreement on Social Security Enter into Force” (Release ID: 2285085), dated 15 July 2026. Available at pib.gov.in.
This article is for informational purposes only and does not constitute legal advice.