UK, India deepen trade cooperation after CETA launch

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UK, India deepen trade cooperation

Highlights

India and UK report early commercial results from the bilateral trade pact, with Indian exporters sending over 50 consignments on the first day and Scottish salmon arriving tariff-free in India within two weeks.
Scotch whisky enters the Indian market under reduced tariffs, and the first British cars exported under the tariff-rate quota clear customs, reflecting rapid business uptake on both sides.
Both governments commit to annual data exchange on tariff use, establish committees for smooth operation, and enhance SME participation, while the next JETCO meeting will take place in the UK in 2027.

CETA rollout and JETCO priorities

As reported by GOV.UK, ministers from India and the UK meet in New Delhi for the 16th India-UK Joint Economic and Trade Committee, the first such meeting since negotiations for the bilateral trade pact began in January 2022. The joint statement says the agreement is already producing early commercial results and is intended to serve as the basis for a broader long-term economic partnership.

The two governments say businesses in both countries move quickly to use the pact after it enters into force. Indian exporters send more than 50 consignments to the UK on the first day, including smartphones, machinery, gold jewellery, garments, woollen yarn, tea and coffee, while Joha rice from Assam reaches the UK for the first time and certificates of origin are issued through India's eCoO 2.0 platform.

On the UK side, tariff-free Scottish salmon reaches India within a fortnight, with several thousand kilos exported since, while Scotch whisky enters the Indian market under reduced tariffs and the first cars shipped under the tariff-rate quota clear customs. The two sides also agree to exchange annual data starting one year after the agreement's entry into force to track tariff use and gather business feedback, with a focus on helping small and medium-sized companies use the deal more effectively.

They also set out steps to keep the agreement operating smoothly, including establishing committees and working groups and confirming government contact points across all parts of the pact. Officials are asked to resolve implementation issues quickly as they arise.

Regional engagement and wider economic impact

The meeting coincides with a visit to India by seven mayors and a combined authority leader from the North of England, underscoring the role of regional authorities in trade and investment ties. The statement says states, regions and cities help strengthen investment, innovation and people-to-people links across the bilateral relationship.

The governments also welcome meetings of the India-UK Science and Innovation Council and the Innovation Roundtable, saying those forums connect businesses, investors and researchers and support faster commercialisation of new technologies. They add that continued industry engagement, sector roundtables and feedback from exporters and trade bodies will help identify both opportunities and implementation challenges under the pact.

Both sides say they will maintain momentum through further high-level visits and broader business-to-business engagement. The 17th JETCO is scheduled to take place in the UK in 2027.

In our earlier article on India’s September inflation surge, we explained that headline CPI rose to a 22-month high, strengthening expectations that the Reserve Bank of India may keep policy tight and potentially hike rates again. We also noted that elevated oil prices and supply risks linked to Middle East shipping routes can feed into India’s imported inflation, creating a more challenging backdrop for trade and investment decisions.

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