The Comprehensive Economic and Trade Agreement (CETA) between India and the UK, signed on July 24, 2025, is set to significantly alter the landscape of trade between the two nations, with the aim of doubling imports and exports to over $100 billion by 2030. This landmark deal, India's 16th such pact, is expected to reduce or eliminate tariffs on a wide array of goods, making several products cheaper for consumers in both countries.

For Indian Consumers:

Several British products are expected to become more affordable for Indian consumers as a result of the CETA. Key items include:

• Scotch Whisky and Gin: Import duties on Scotch whisky and gin will see a phased reduction, from 150% to 75% immediately, and eventually to 40% within ten years. This will likely make premium brands more accessible to Indian consumers.
• Automobiles: Tariffs on automotive imports will decrease to 10% from rates exceeding 100%, though this will be implemented under a quota system. This reduction should lead to lower prices for British car brands in India.
• Electric Vehicles (EVs): Indian manufacturers will gain access to the UK market for electric and hybrid vehicles, also under a quota system. For EVs, the import duty will see a significant reduction from 110% to 10% within specified quotas.
• Other Consumer Goods: The average tariff on UK products will drop from 15% to 3%. Consequently, items like soft drinks, cosmetics, chocolates, and biscuits from the UK will likely become more competitively priced in the Indian market. Lamb and salmon from the UK will also be more easily accessible to Indian consumers.
• Medical Devices and Aerospace Parts: Indian industries and consumers will benefit from reduced costs on medical devices and aerospace parts manufactured and imported from the UK.

For British Consumers:

The trade deal also has numerous benefits for consumers in the UK. Key highlights include:

• Duty-Free Access for Indian Exports: 99% of Indian exports to the UK will enjoy duty-free access, encompassing a broad spectrum of goods. This includes textiles, gems and jewellery, seafood, leather goods, engineering products, and processed foods.
• Cheaper Prices and More Choice: British consumers can anticipate lower prices and a wider selection of clothing, shoes, and food products.
• Access to Indian Staples: Items like turmeric, pepper, cardamom, mango pulp, pickles, pulses, shrimp, and tuna from India will have duty-free access to the UK market. More than 95% of agricultural and processed food tariff lines will attract zero duties on fruits, vegetables, cereals, spice mixes, fruit pulps, ready-to-eat meals, and processed foods.

Broader Economic Impacts:

Beyond specific products, the India-UK CETA is expected to have wider economic ramifications for both nations.

• Increased Trade Volume: The agreement aims to boost bilateral trade by $34 billion annually.
• Export Growth: Duty-free access is expected to increase India's agricultural exports by over 20% in the next three years. Engineering and electronics exports from India could double by 2030.
• Job Creation and Investment: The UK anticipates the creation of over 2,200 jobs as a direct result of the trade agreement. Indian firms have committed nearly 6 billion in investments into the UK.
• Opportunities for Professionals: Indian professionals will have easier access to work in the UK, with access to 35 service sectors for up to two years even without an office in the country. This is projected to benefit over 60,000 IT professionals each year.

The Road Ahead:

While the agreement has been signed, it still requires approval from the British Parliament before it can take effect, a process that may take approximately a year. Once implemented, the India-UK CETA is poised to usher in a new era of economic partnership, characterized by increased trade, investment, and opportunities for businesses and consumers alike.