India-UK CETA: Unlocking trade and investment
The India–UK Comprehensive Economic and Trade Agreement (CETA) marks a significant milestone in the evolution of one of the world's most important economic partnerships. More than a free trade agreement, it provides a comprehensive framework for deeper collaboration across trade in goods and services, investment, talent mobility, digital trade, government procurement and innovation.
Bilateral trade between India and the UK stood at £47.9 billion in the four quarters to Q4 2025, up 10% year-on-year1, and both governments have committed to the shared ambition of USD 100 billion by 20302. The India-UK CETA is central to that ambition, building more resilient supply chains and creating fresh India-UK trade opportunities for businesses to expand investment, strengthen value chains and establish a stronger corridor presence.
Why the CETA matters for businesses
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For India
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For the UK
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Strengthening the India-UK trade and business growth
The India–UK FTA is expected to strengthen the bilateral economic corridor by encouraging investment, expanding market access and enabling businesses to build long-term capabilities across both countries.
Make in India and the localisation opportunity
As trade and investment grow, businesses are expected to establish manufacturing, services and innovation capabilities closer to the market. Localisation is expected to strengthen supply chains, support government procurement opportunities and reinforce long-term growth in India.
India as a manufacturing and services hub
CETA is expected to reinforce India's position as a preferred destination for manufacturing, Global Capability Centres (GCCs), research and development, 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.
Talent, services and cross-border mobility
The agreement is expected to improve mobility for eligible professionals and strengthen cross-border services. Combined with the Double Contributions Convention, it can help businesses deploy talent more efficiently and support cross-border growth.
How businesses can maximise India-UK CETA opportunities
| Business objective | Benefits for India-headquartered businesses | Benefits for UK-headquartered businesses |
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Export goods
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Preferential tariff access, Rules of Origin framework, simplified customs procedures and improved market access.
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Reduced tariffs across eligible sectors, improved customs procedures, greater regulatory transparency and reduced non-tariff barriers.
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Expand operations
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Supports investment, provides greater regulatory certainty and reduces barriers affecting commercial operations.
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Facilitates long-term investment, supply-chain development, manufacturing expansion and commercial presence in India.
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Grow services
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Improved market access across professional, financial, telecommunications and digital services, with greater regulatory certainty.
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Market access commitments across key service sectors, improved regulatory clarity and support for digital trade and technology-enabled services.
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Deploy talent
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Improved mobility provisions for business visitors, intra-company transferees and service providers, supported by the Double Contributions Convention.
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Easier deployment of eligible professionals supporting cross-border projects and business expansion.
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Public procurement
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Dedicated government procurement commitments provide access to specified procurement opportunities and greater transparency.
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Turning opportunity into action
Realising the full value of CETA will require businesses to navigate Rules of Origin, customs procedures, supply-chain restructuring and evolving regulatory requirements. Whether expanding exports, establishing operations or investing across the corridor, organisations will need a clear market entry and compliance strategy to maximise the agreement's benefits.
How Grant Thornton Bharat can help
Grant Thornton Bharat supports clients through end-to-end FTA advisory, including origin determination, multi-tier supply-chain modelling, CAROTAR compliance, integrated trade and transfer pricing solutions, and comprehensive deal lifecycle support for inbound and outbound expansion.
CETA advisory and compliance
End-to-end support on Rules of Origin, product eligibility, CAROTAR compliance and customs requirements.
Supply chain optimisation
Designing tax-efficient supply chains, operating models and cross-border structures aligned with customs, transfer pricing and foreign exchange regulations.
Transfer pricing advisory
Assessing CETA-related TP implications, operating model redesign, benchmarking and dispute resolution support.
Deals and market expansion
End-to-end advisory for inbound and outbound investments, including diligence, valuation, structuring and post-deal integration.
Strategic ecosystem support
Leveraging our extensive industry expertise and global network to help businesses navigate opportunities across the India–UK corridor.
India–UK CETA: Strategic implications for businesses
Explore the impact of CETA on trade, services, investment, mobility and value chains, and key considerations for businesses operating across both markets.
India-UK FTA: Growth opportunities for Indian businesses
Explore how the India-UK FTA creates new opportunities for Indian businesses through improved market access, investment, mobility and cross-border expansion.