Unpacking the UK-India CETA: Key talking points from one of the year’s biggest trade deals

As we approach the end of the year, we look back and touch upon the highlights of one of the foremost trade agreements signed in 2025 - a year that has been eventful for global trade. The aim is to outline what this means for companies looking to invest in the Indian economy and vice versa. 

Vast revision of tariffs

The headline-grabbing development was the vast revision of the tariffs that existed between the British and Indian economies. As we have outlined before, New Delhi has historically been protective of its businesses, a sentiment common amongst postcolonial nations. The irony therefore writes itself, that the lowering of the tariff guard happens in a trade deal with the UK. The bilateral trade relationship between the two countries stood at GBP 42 billion in 2024, according to a statement issued by the UK Government. The CETA, once operationalised in 2026 following ratification from respective parliaments, is slated to boost this figure by an additional GBP 25.5 billion. A trade expert based in New Delhi who we spoke to described this as ‘the most important’ part of the agreement, noting the access British products will have to the Indian market.

Indeed, as per the terms of the agreement made public, 85 percent of British exports to India will now be traded tariff-free, including luxury cars, Scotch whiskey and cosmetics. In turn, Indian goods entering the UK, such as garments and jewellery, will enjoy a reduction in tariffs imposed by London. This will be particularly pleasing for Indian garment businesses, who have in recent years lagged behind their counterparts in Vietnam and Bangladesh. India’s gem and jewellery sector will also be boosted by this, given its prominence in the global jewellery industry - 14 out of 15 diamonds in the world are either cut or polished in India.  

Digital procurement portal access

A second key development following the CETA will be the ability for UK businesses to access India’s digital procurement portal, the Government e-Marketplace (GeM). This is used by the government, its multiple agencies as well as major state-owned entities to procure services. After the implementation of the CETA, companies in the UK will be able to bid for government tenders in goods and services and construction sectors in India, in a manner similar as compared to their Indian counterparts. This is outlined in chapter 15 of the CETA. For instance, British firms will have access to real time tender information. Further, the annexure to chapter 15 specifies the minimum bid values for British firms bidding for contracts, at INR 55 million (GBP 464,000) for goods and services, and INR 600 million (GBP 5 million) for construction. The BBC has reported this as a sharp reduction in minimum bid values for British firms. 

This is particularly notable given New Delhi’s historical protection of government procurement, and preferential treatment towards Indian businesses. With this development, the UK becomes the second country with access to India’s digital procurement portal, after the UAE (from 2022). Risks do remain - delayed contractual payments are a prominent issue, and the Indian market is extremely price competitive - but it does appear to be a step in a more liberal direction. 

Educational policy updates

A third key facet of the CETA is that it enables UK universities to establish educational campuses in India, as an educational service, outlined in chapter 8 of the agreement. Prior to this, campuses were set up under specific policy changes, such as the National Education Policy of 2020, and updated regulations published by India’s higher education regulator, the University Grants Commission (UGC). Going forward, these institutions will be protected by a singular legally binding bilateral agreement, which offers more security for UK education-focused investors and institutions as they consider campuses in India. 

Indeed, education is a joint area of interest for India and the UK. Since the liberalisation of the education sector, UK higher education providers have set up India campuses, such as Harrow International  School (Bengaluru) and Wellington International School (Pune) respectively, operational since 2023. The University of Southampton has also established a campus in Gurugram, a satellite city adjacent to New Delhi, in 2025, while the University of Bristol has also announced the establishment of a Mumbai campus. Branches of prominent British higher education institutions in India are able to tap into an upwardly mobile middle class in India who are not as price sensitive, in tandem with India’s attempts to ‘internationalise’ its education, which it has sought to do through independent policy measures. Newspaper reporting in India from October 2025 has further indicated that there are at least 7 more UK universities seeking to open campuses in the subcontinent. 

What next?

Against a backdrop of increasingly cooling relations between India and the US, the India-UK trade relationship could gain further significance. The New Delhi-based trade expert described the agreement as an ‘overall positive development’ in the bilateral relationship between two major economies. In October 2025, following the signing of the CETA, UK Prime Minister Keir Starmer travelled to India with the UK’s largest ever trade delegation to India, comprising 125 CEOs, entrepreneurs and university vice-chancellors. This underscores the appetite UK businesses have for greater outward investment and closer trade relations with India, a jurisdiction with plentiful opportunities in key sectors. 

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