The economic ambitions underpinning the CETA are substantial. According to the UK Department for Business and Trade (the DBT), UK-India trade was worth approximately £48 billion in 2025 and the DBT forecasts that the CETA could increase bilateral trade by £25.5 billion annually in the long run. A July 2026 study by industry body Assocham has also projected that India exports to the UK alone could reach US$115 billion by 2030 with total bilateral trade rising from around US$58 billion in 2025–26, alongside the creation of an estimated 700,000 to 1 million jobs. However, Assocham cautions that realising this potential will depend on Indian exporters meeting quality, certification and rules-of-origin requirements.
New opportunities across goods and services
For Indian exporters, the CETA significantly enhances access to the UK market. According to leading news agency Reuters, the UK has removed duties on the vast majority of tariff lines, creating opportunities across sectors including textiles, footwear, cosmetics, jewellery, food products and engineering and marine products such as industrial machinery, electrical equipment and automative components. These are industries where even relatively modest reductions in trade barriers can translate into a meaningful competitive advantage, enabling Indian businesses to expand exports, improve margins and strengthen their position in the UK market.
The CETA is equally important for UK businesses. India has agreed to reduce or eliminate tariffs across a broad range of goods such as the above but has also agreed to allow improved access opportunities in areas such as procurement financial services and medtech. As India continues its trajectory as one of the world's fastest-growing major economies, the agreement may create new opportunities for investment, collaboration and market expansion for UK businesses.
Importantly, the CETA extends beyond trade in goods. It is intended to strengthen the wider commercial corridor between the UK and India by facilitating business mobility and cross-border services. The accompanying Double Contributions Convention (the DCC), which entered into force alongside the CETA, ensures that employees temporarily working between the two jurisdictions pay social security contributions in only one country at a time. The exemption period was extended shortly before implementation from three years to five years and is expected to benefit more than 75,000 Indian professionals and over 900 companies operating in the UK. This is likely to be particularly valuable for organisations deploying senior executives, technical specialists and project teams across borders, and should prompt a review of existing secondment and assignment structures to confirm eligibility and documentation requirements, including the Certificate of Coverage needed to claim the exemption.
Converting opportunity into commercial advantage
Whilst the headline announcements have attracted considerable attention, the real value of the CETA will ultimately depend on how effectively businesses implement their growth strategies.
Tariff reductions alone do not guarantee commercial success. Businesses seeking to benefit from the CETA will need to comply with rules of origin requirements, customs procedures, product standards and regulatory obligations. Industry bodies have emphasised that quality standards, certification requirements and sustainability expectations will remain important determinants of success, particularly for exporters seeking to increase their presence in overseas markets.
Businesses may also wish to review existing contractual arrangements, distribution structures, procurement processes and supply chain models to determine whether they remain fit for purpose in a post-CETA trading environment. In many cases, the CETA may provide an opportunity to revisit commercial arrangements that were structured around previous tariff and regulatory assumptions. Businesses should also consider their intellectual property strategy, particularly when expansion into new markets requires robust protection of trademarks, designs, patents, software and other valuable intangible assets associated with their products and brands.
Trade growth can also mean increased dispute risk
Periods of rapid growth in international trade are frequently accompanied by an increase in commercial disputes. As businesses enter new markets, engage new counterparties and establish more complex cross-border relationships, the legal and operational risks can increase alongside the commercial opportunities.
In our experience, disputes often arise in relation to supply chain disruption, pricing mechanisms, product quality, regulatory compliance, delivery obligations, exclusivity arrangements, intellectual property and the allocation of risk within long-term commercial contracts. Cross-border projects can add further complexity where parties operate under different legal systems, regulatory regimes and business practices.
For that reason, businesses should consider dispute risk at the outset rather than once a problem has arisen. Clear contractual drafting, effective governance structures and robust record-keeping can significantly reduce uncertainty if disagreements emerge. Particular consideration should also be given to governing law clauses, jurisdiction provisions and dispute resolution mechanisms, including whether litigation or arbitration is likely to provide the most effective means of resolving disputes. Early planning in these areas can save substantial time and cost later.
As commercial relationships between UK and Indian businesses continue to deepen, effective dispute avoidance and risk management will become increasingly important. The businesses best placed to capitalise on the opportunities created by the CETA are likely to be those that approach growth and risk management as complementary objectives rather than competing priorities.
Looking ahead
The CETA represents more than a trade agreement. It is a framework for deeper economic integration between the UK and India, supporting investment, services, innovation, mobility and long-term commercial collaboration. For businesses operating across this corridor, the CETA creates opportunities for growth, but also requires careful attention to implementation, governance and legal risk.
Those organisations that combine commercial ambition with robust contractual frameworks, proactive risk management and effective dispute prevention strategies will be best positioned to maximise the benefits of the CETA in the years ahead.
DWF is a leading legal adviser to Indian and India-focussed companies, financial institutions and high net worth individuals and families. Our India Group, consisting of 108 lawyers from 9 countries, 16 practice areas and 9 sector groups, is the largest India group of any international law firm located outside India.
Dhruv Chhatralia BEM, the Head of the DWF India Group, was named to the India Business Law Journal’s International A-List 2024 featuring the world’s top-tier international lawyers outside India, based on recommendations by general counsels and lawyers at Indian law firms, for his work on cross-border aspects of India-related matters. DWF was ranked as an International Firm to Watch by the Indian Business Law Journal in 2025 and 2026, with Rory White-Andrews and Imogen Francis being recognised as Indian focused lawyers in the areas of restructuring and insolvency and intellectual property, respectively. DWF was also shortlisted for the award of “Legal Practice of the Year” at the 6th Annual UK-India Awards in 2024 based on the achievements of the DWF India Group. Further details about the DWF India Group can be found on the following webpage: https://dwfgroup.com/en/services/india-group.
