Examine how India safeguarded sensitive sectors in the India–UK CETA while securing market access for labour-intensive exports.
New · District CollectorCan you hold the district for 72 hours?Floods, a heatwave, an outbreak, a grievance queue. Take the decisions, see the consequences.Play →The India–UK Comprehensive Economic and Trade Agreement (CETA) has been in force since 15 July 2026. It is deliberately asymmetric. India gets almost complete access to the UK market for its exports, while it limits its own tariff cuts to protect farmers and vulnerable industries [1].
Safeguarding sensitive sectors
- Exclusion list: India gave no tariff cuts on dairy, cereals, millets, edible oils, oilseeds, apples and some vegetable products. This protects small farmers' incomes and food security [1].
- Gradual opening: India cut tariffs on 89.5% of its tariff lines. Only 24.5% of UK export value became duty-free at once, and the rest is phased in over 5, 7 or 10 years [2].
- Price and quantity limits: Scotch whisky pays a lower, not zero, duty. UK cars come in only under a tariff-rate quota (TRQ), where the low duty applies only up to a fixed number of cars. Indian producers therefore face limited competition [3].
- Gold, jewellery and lab-grown diamonds also stay on the sensitive list [2].
Securing access for labour-intensive exports
- Zero duty on about 99% of UK tariff lines, covering nearly all of India's export value [1].
- Early use: more than 50 consignments left for the UK on day one, including garments, woollen yarn, gold jewellery, tea. Joha rice from Assam was exported to the UK for the first time [3].
- Seafood: UK tariffs on Indian seafood were removed. Industry estimates expect exports to the UK to grow by about 70% [4].
- Support measures: exporters can certify the origin of their goods themselves on eCoO 2.0, which cuts compliance costs [3]. The Double Contribution Convention (DCC) means Indian professionals on temporary UK postings do not pay social security in both countries, for up to five years [1].
Limitations
- Use not yet proven: India and the UK will share data on how far exporters actually claim CETA's lower tariffs only from one year after it came into force [3].
- Burden on MSMEs: under self-certification, small exporters must prove where their goods were made if UK customs questions a claim [3].
- Barriers other than tariffs: UK steel measures from July 2026 limit Indian steel through quotas, despite zero tariffs [5].
Overall, CETA shields agriculture while pushing exports that create many jobs. JETCO, the India–UK trade committee now refocused on implementing CETA, will review this usage data every year. Together with export councils training MSMEs, this can turn tariff access into real export gains. That would advance SDG 8 (decent work) without putting farm incomes at risk.
Sources
- 1India and the United Kingdom Unleash a Next Generation Economic Corridor: CETA and Agreement on Social Security Contributions Set to Enter into Force on 15th July 2026 – PIBentry-into-force date; zero duty on about 99% of tariff lines; farm exclusion list; five-year DCC exemption
- 2India–UK CETA, PIB Press NoteIndia's tariff cuts on 89.5% of lines; 24.5% duty-free at once; phasing over 5/7/10 years; gold, jewellery and lab-grown diamonds kept sensitive
- 3Joint Statement of the 16th Meeting of the India–UK JETCO – PIBlower whisky duty; car TRQ; more than 50 day-one consignments; Joha rice; eCoO 2.0 self-certification; annual usage-data exchange
- 4India's Seafood Industry Poised to Ride CETA Wave with Estimated 70% Export Growth to UK – PIBseafood tariffs removed; estimated 70% export growth
- 5India–UK CETA and Agreement on Social Security Enter into Force – PIBUK steel quotas (country-specific quota and residual quota) from 1 July 2026