The UK-India CETA is live. Are you ready?

You’ve been tracking this. Now it’s time to act. 

The 2026 India Meets Britain Tracker counts 1,912 Indian-owned businesses now operating in Britain - up almost 60% year-on-year. Between them, they generate £105.7 billion in turnover and employ 203,549 people. 

Bilateral trade between the two countries has reached £47.9 billion, up 10% year-on-year. And the UK-India relationship is set to become stronger than ever. 

From 15 July, the UK-India Comprehensive Economic and Trade Agreement (CETA), also known as the FTA, enters into force, projected to add £25.5 billion a year to bilateral trade, contribute £4.8 billion to UK GDP, and deliver around £400 million in tariff reductions in the first year alone.

What changes on 15 July 

The most immediate impact is on goods costs. Tariffs drop across a wide range of categories from day one, with further reductions phased in over time. 

For UK exporters, this opens meaningfully lower barriers into one of the world’s fastest-growing major economies; India is projected to sustain GDP growth of 6.8–7.2% in FY27. For Indian businesses exporting to the UK, it means simpler, cheaper access to a strategically important market. 

Beyond tariffs, the agreement simplifies customs processes, supports digital trade, creates a dedicated Financial Services chapter, and establishes a pathway for mutual recognition of professional qualifications including accounting, auditing, and architecture. Provisions on professional mobility will make it easier to move skilled workers, including IT specialists, between the two markets. 

The agreement is also expected to reinforce India's position as a preferred destination for manufacturing, GCCs, R&D, and high-value services. Improved market access and greater investment certainty are expected to encourage businesses to scale operations and serve global markets from India. 

Sector by sector: where the gains are sharpest 

The tariff changes aren’t evenly distributed. Some sectors will feel the impact immediately. 

• Scotch whisky and gin see the most dramatic shift with import tariffs into India cut from 150% to 75% on the day the agreement goes into force, with further reductions to follow. 
• Automotive benefits from Indian tariffs on UK vehicles falling from over 100% to 10% within agreed quota arrangements, covering electric vehicles as well as conventional models. This matters directly for businesses like Jaguar Land Rover, the largest Indian-owned employer in the UK with 44,103 employees. 
• Pharmaceuticals and life sciences gain from the removal of all Indian tariffs on UK goods, alongside new medtech opportunities as tariffs on medical devices are reduced. Indian pharma firms including Zydus, Lupin, Cipla, and Accord Healthcare all feature in our India meets Britain Tracker. 
• Financial and professional services gain from locked-in market access arrangements and a new framework for mutual recognition of qualifications. For Indian technology and consulting firms with large UK operations, the professional mobility provisions directly affect how they deploy talent. 
• Aerospace and advanced manufacturing benefit from UK aircraft parts. Currently subject to tariffs of up to 11%, these become tariff-free. 

The issue most businesses will underestimate: rules of origin 

Tariff reductions only apply to goods that qualify. Qualification is determined by rules of origin and this is where many businesses will come unstuck. 

Product origin isn’t where something is shipped from, it’s where it’s ‘made’ or last underwent significant processing, a determination that can be complex for goods with multi-country supply chains.

 

Incorrect origin declarations can lead to unexpected duty costs, inaccurate pricing, and compliance exposure. Businesses that have restructured supply chains in response to geopolitical pressure, COVID-19, or Brexit need to revisit the origin question under the new CETA rules. As the agreement is due to come into force shortly, now is the time to check the origin of products.

 

Adam Taylor, Head of Customs and Excise Duties at Grant Thornton

The CETA doesn’t fix everything 

Lower tariffs don’t cancel out rising visa costs, tightening immigration rules, high electricity prices, and a more complex regulatory environment. These are structural pressures, and a clear-eyed view of the CETA opportunity requires acknowledging them.

On workforce costs: the Skilled Worker visa salary threshold reached £41,700 from July 2025. Davyd Fisher, Employer Solutions Partner at Grant Thornton, notes that “HMRC is taking a firmer view on the tax treatment of visa costs, with a position emerging that these should generally be treated as taxable benefits. For Indian technology and services businesses, where employee mobility underpins project delivery, this creates both cost pressure and governance risk.” Katy Bond, Employer Solutions Partner at Grant Thornton, adds, “businesses that plan their workforce strategy proactively will control costs. Those that don’t will be caught out, especially as the UK-India Double Contribution Convention (DCC) will also take effect on 15 July and will require immediate review to ensure that employers remain compliant from a payroll perspective.” 

On energy: Ben Shafran, Director of Economic Consulting at Grant Thornton, works with businesses to manage energy price exposure through corporate power purchase agreements, on-site generation, and ESG-linked planning: “The CETA does nothing to address the UK’s structural electricity cost disadvantage. UK industrial prices remain significantly higher than in Germany, France, or Sweden.” 

On supply chain compliance: the CETA creates new obligations as well as new opportunities. Ben Langford, Partner in Business Risk Services, warns that, “the Bribery Act, Modern Slavery legislation, ECCTA, and the Criminal Finances Act all remain in full force. Businesses with complex multi-market supply chains need adequate procedures in place, and CETA is a natural prompt to check whether they do.”

How we can help 

Grant Thornton UK and Grant Thornton Bharat have been working together in this corridor for 35 years and can support businesses across the full journey, from customs and origin to market entry and workforce planning. 

• Customs and rules of origin: determining whether goods qualify for preferential treatment, calculating origin under CETA rules, and securing advance rulings where the position is uncertain.
• Workforce and visa strategy: modelling the cost impact of rising salary thresholds, reviewing the tax treatment of visa costs, and supporting on the impact of the new UK-India DCC on your mobile employees. Ultimately to build workforce plans that hold up under the new rules. 
• Energy and ESG: managing exposure to UK electricity prices and meeting climate commitments as the UK market undergoes significant regulatory change. 
• Supply chain compliance: implementing due diligence frameworks and reviewing supplier obligations across the full range of UK legislation. 
• Market entry and expansion: recommending how to structure operations in both the UK and India, as a domestic market and a platform for broader international growth. 

The businesses that act in the next 90 days will have a material cost and market advantage over those that treat this as a trade policy story rather than a business decision. 

Get the Indian perspective from our GT Bharat colleagues 

• India-UK CETA: Unlocking trade and investment
• India–UK CETA: Redefining the scope of bilateral trade
• India-UK FTA: A new era for Indian businesses in the UK