--- title: "India–UK FTA (CETA): Legal Guidance for India–UK Trade" date: 2026-08-25 author: "Sagar Agrawal" url: https://ksandk.com/india-uk-fta/ --- # India–UK FTA (CETA): Legal Guidance for Businesses Trading Between India and the UK The India–UK Comprehensive Economic and Trade Agreement is in force. Tariffs, rules of origin, services access and the cost of moving people between the two countries have all changed. King Stubb & Kasiva advises Indian and British businesses on what that means for their contracts, supply chains and workforce. [Explore the sector analyses](https://ksandk.com/india-uk-fta/#sectors)[Read the framework guide](https://ksandk.com/trade-commerce/india-uk-ceta/) ## Speak to our India–UK trade team Tell us what you trade and we will come back on where the agreement helps you. 15 Jul2026 CETA and the Double Contributions Convention in force 90% of Indian imports of UK goods see tariffs cut or removed 26 sector analyses published by our lawyers since July 20 partners across 9 offices in 7 Indian cities ## What the agreement changes Most coverage of the CETA stops at the headline tariff numbers. The provisions that decide whether your business gains from it sit further down. ### Tariffs Duty reductions cover a wide span of goods lines, and most phase in over several years. What you pay at the border depends on whether the goods qualify for preference, not on the headline rate. ### Rules of origin Goods have to meet origin criteria before any preferential rate applies, and the criteria differ line by line. Sourcing decisions taken before the agreement may not survive it. ### Services and mobility Commitments on professional and business services, plus a Double Contributions Convention that changes the cost of posting employees between India and the UK. ### Procurement and investment Government contracts open up on both sides and the investment climate shifts across regulated sectors, bringing new compliance obligations with it. ## Does your product actually qualify? Preference is not automatic. A tariff line being “reduced” says nothing about whether *your* shipment gets the rate; that turns on the rules of origin, and this is where most claims fail. ### There are three routes to originating status A good qualifies if it is wholly obtained or produced in the UK or India; or produced entirely from originating materials of both parties; or made using non-originating materials but satisfying the product-specific rule for its tariff line. Most manufactured goods fall into the third category, where the analysis begins. ### There is no single percentage threshold A figure of 40% qualifying value content circulates widely and gets repeated as though it were the test. UK Government guidance gives 40% as a worked example for one product line. The applicable rule, and any value threshold inside it, is set product by product in the schedule of product-specific rules, so one number quoted across a whole catalogue will not hold. ### Register before you claim UK exporters must register with HMRC against their EORI number before completing origin declarations, and declarations must be dated on or after 15 July 2026. For goods entering India, an authenticated origin declaration goes to CBIC from a registered address and comes back with a unique reference number, which supports the claim for preferential treatment. ### Relief is staged over years Some lines fall to zero at once; many take a decade. Pricing, supply contracts and landed-cost models built on the headline “tariffs eliminated” will be wrong for years unless they track the staging for the specific tariff line. *Gearboxes, HS 8708.40, UK to India. A 16.5% base rate is 14.85% for 2026 and reaches zero only in 2035.* Where origin claims come apart in practice Third-country inputs never valuedTariff lines classified by habit, not HS 2022Evidence not retained for verificationClaims made before registration completed ## Contract clauses the agreement puts in play Supply, distribution and manufacturing agreements written before 15 July 2026 allocate duty and origin risk on assumptions that no longer hold. These are the clauses we are most often asked to reopen. ### Price and duty adjustment Who captures the benefit when a staged reduction lands, and who carries the cost if preference is denied? Fixed prices agreed pre-CETA usually hand the whole gain to one side by accident. ### Origin warranties and indemnity An express warranty that goods meet the product-specific rule, backed by an indemnity for duty, interest and penalties if a claim is later disallowed on verification. ### Documentation and retention Which party registers, which produces the declaration, who holds the supporting evidence, and for how long. Verification can arrive well after delivery. ### Classification responsibility HS classification drives the applicable rule. Contracts rarely say who is responsible for getting it right, or what happens when it is wrong. ### Standards and conformity Tariff access does not displace domestic product, labelling and regulatory requirements on either side. Those obligations need their own clause. ### IP and technology transfer Licensing, brand protection and technology-sharing terms in cross-border manufacturing arrangements, including what happens to improvements made in the host country. ### Mobility and secondment Assignment terms, payroll and contribution treatment under the Double Contributions Convention, and who bears the cost if the exemption is lost. ### Governing law and dispute resolution Forum, seat and enforcement across two jurisdictions, decided deliberately instead of inherited from a template. ## The agreement, sector by sector Our lawyers have published 26 analyses of the CETA since it entered into force, grouped below by the sector each one addresses. ### The framework5 Start here: what the agreement is, when it bites, and the origin rules that decide whether you get the tariff at all. - [The India–UK CETA is now in force: the new trade architecture](https://ksandk.com/trade-commerce/india-uk-ceta/) - [Are your commercial contracts ready for the FTA?](https://ksandk.com/trade-commerce/indiauk-fta/) - [Rules of origin: why the “Made in” label is not the test](https://ksandk.com/trade-commerce/india-uk-fta-rules-of-origin/) - [Products using Chinese components: do they still qualify?](https://ksandk.com/trade-commerce/india-uk-fta-chinese-components-rules-of-origin/) - [Ten FTA provisions every CEO and general counsel should understand](https://ksandk.com/trade-and-customs/india-uk-fta-key-provisions-for-ceos-general-counsel/) ### Manufacturing & industrials5 Automotive, advanced manufacturing, chemicals and defence, where tariff lines and supply-chain structuring move together. - [Automotive: will British cars really become cheaper in India?](https://ksandk.com/trade-commerce/india-uk-fta-british-cars/) - [Automotive: beyond tariff cuts, a new era of trade](https://ksandk.com/automobile/india-uk-fta-automobile-industry-legal-guide/) (companion piece) - [Advanced manufacturing: industrial investment and supply-chain integration](https://ksandk.com/international-trade/india-uk-fta-manufacturing-engineering/) - [Chemicals: contract manufacturing agreements under the FTA](https://ksandk.com/healthcare-pharma-life-sciences/india-uk-ceta-contract-manufacturing-chemicals/) - [Defence and aerospace: a new corridor for technology partnerships](https://ksandk.com/defence-and-aerospace/india-uk-fta-defence/) ### Life sciences & healthcare2 Market access for Indian pharma in Britain, and what the agreement opens for biotech and healthcare innovation. - [Pharma: can the FTA unlock a new era for Indian pharma in Britain?](https://ksandk.com/healthcare-pharma-life-sciences/india-uk-fta-pharmaceutical/) - [Life sciences: pharmaceuticals, biotechnology and healthcare innovation](https://ksandk.com/healthcare-pharma-life-sciences/india-uk-fta-life-sciences-sector/) (companion piece) ### Consumer, retail & agriculture4 British brands entering India, Indian goods reaching British shelves, and the standards questions in between. - [Consumer: should Indian companies worry about British brands?](https://ksandk.com/corporate/india-uk-fta/) - [Retail, e-commerce and franchising under the FTA](https://ksandk.com/corporate/india-uk-fta-retail-luxury-ecommerce/) - [Textiles and fashion: from Tiruppur to London](https://ksandk.com/litigation/india-uk-fta-textiles/) - [Food and agriculture: from Indian farms to British shelves](https://ksandk.com/regulatory/india-uk-fta-food-agriculture-export-opportunities/) ### Technology, media & education3 Services commitments and data questions for IT companies, GCCs, content businesses and education providers. - [IT companies and GCCs: ten changes to prepare for](https://ksandk.com/data-protection-and-data-privacy/india-uk-fta-it-companies-gccs-key-changes/) - [Film, OTT and gaming: what the FTA really means](https://ksandk.com/media-and-entertainment/india-uk-fta-media-entertainment-legal-guide/) - [Education: how the FTA could reshape the sector](https://ksandk.com/corporate/india-uk-fta-higher-education-edtech/) ### Capital, deals & financial services4 Where the agreement changes deal flow: cross-border M&A, financial services corridors, real estate and clean energy investment. - [Financial services: London and GIFT City as a cross-border corridor](https://ksandk.com/banking/india-uk-fta-financial-services/) - [Cross-border M&A: which sectors see the next wave?](https://ksandk.com/corporate/india-uk-fta-cross-border-ma/) - [Real estate: investment opportunities for developers and investors](https://ksandk.com/real-estate/india-uk-fta-real-estate-investment-opportunities/) - [Green economy: the next clean energy investment corridor?](https://ksandk.com/energy/india-uk-fta-green-economy/) ### People, services & public contracts3 Secondments and social security, cross-border professional practice, and access to government procurement. - [The 60-month rule: secondments and the social security agreement](https://ksandk.com/labour-employment/india-uk-social-security-60-month-rule/) - [Professional services: lawyers, accountants, architects and consultants](https://ksandk.com/international-trade/india-uk-fta-professional-services/) - [Government procurement: billions in public contracts](https://ksandk.com/international-trade/india-uk-fta-government-procurement/) ## How we help Advice on the agreement is only useful when it reaches a decision: whether a product qualifies, whether a clause needs renegotiating, whether an assignment is structured the cheapest lawful way. ### Rules-of-origin opinions A written view on whether a given product qualifies for preferential treatment, what documentation supports the claim, and where the exposure sits if it is challenged. ### Contract review and renegotiation Agreements signed before the CETA often put duty risk on the wrong party. We identify the clauses that need to move and negotiate the change. ### Secondments and social security Structuring assignments between India and the UK under the 60-month rule, including payroll, contribution and permanent-establishment consequences. ### Market entry and structuring Entity choice, FDI conditions, regulatory licensing and joint-venture terms for businesses setting up on either side of the corridor. ### Government procurement Eligibility assessment, bid documentation and compliance for Indian businesses pursuing UK public contracts and vice versa. ## Why King Stubb & Kasiva Trade questions rarely stay trade questions. An origin problem becomes a customs dispute, a secondment becomes a tax residence question, a distribution renegotiation becomes a competition issue. Our trade, corporate, tax, employment and disputes teams sit in one firm across nine offices in seven Indian cities, so those threads are handled together instead of referred out. Managing Partner Jidesh Kumar has commented publicly on the trade deal and its effect on businesses and workers; [read his analysis](https://ksandk.com/news/india-uk-trade-deal/). For the wider practice, see our [international trade](https://ksandk.com/international-trade/) and [trade & commerce](https://ksandk.com/trade-commerce/) coverage. ## The partners behind this analysis Every piece in the series above was written by a named lawyer at the firm. 20 of them are partners; between them they cover trade and customs, corporate and M&A, tax, employment, IP and disputes. ![Jidesh Kumar, Managing Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/jidesh-Ksandk-514x720.webp) ### [Jidesh Kumar](https://ksandk.com/people/jidesh-kumar/) Managing Partner Bangalore ![Rajesh Sivaswamy, Senior Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Rajesh-Ksandk-620x720.webp) ### [Rajesh Sivaswamy](https://ksandk.com/people/rajesh-sivaswamy/) Senior Partner New Delhi ![Aurelia Menezes, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/94efa763-4a04-4d32-98cb-dda909d77eb3-539x720.webp) ### [Aurelia Menezes](https://ksandk.com/people/aurelia-menezes/) Partner Bangalore ![Vidya K, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Vidya-ksk-480x720.webp) ### [Vidya K](https://ksandk.com/people/vidya-k/) Partner Hyderabad ![Abhishek Paliwal, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Abhishek-Paliwal-ksk.--479x720.webp) ### [Abhishek Paliwal](https://ksandk.com/people/abhishek-paliwal/) Partner New Delhi ![Aditya Bhattacharya, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Aditya-Bhattacharya-ksk01-e1779783090251-520x720.webp) ### [Aditya Bhattacharya](https://ksandk.com/people/aditya-bhattacharya/) Partner New Delhi ![Arpit Choudhary, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Arpit-Choudhary-ksk-480x720.webp) ### [Arpit Choudhary](https://ksandk.com/people/arpit-choudhary/) Partner Mumbai ![Asha Kiran Sharma, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Asha-Kiran-Sharma-ksk-627x720.webp) ### [Asha Kiran Sharma](https://ksandk.com/people/asha-kiran-sharma/) Partner Bangalore ![Dhruv Kaushal, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/e18ba7fb-7799-4a25-b56b-436d5a95a1bf-585x720.png) ### [Dhruv Kaushal](https://ksandk.com/people/dhruv-kaushal/) Partner New Delhi ![Navod Prasannan, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Navod-Prasannan-ksk-540x720.webp) ### [Navod Prasannan](https://ksandk.com/people/navod-prasannan/) Partner Chennai ![Nivedita Bhardwaj, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Nivedita-Bhardwaj-ksk._-618x720.webp) ### [Nivedita Bhardwaj](https://ksandk.com/people/nivedita-bhardwaj/) Partner Bangalore ![Prithiviraj Senthil Nathan, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Prithiviraj-Senthil-Nathan-ksk-541x720.webp) ### [Prithiviraj Senthil Nathan](https://ksandk.com/people/prithiviraj-senthil-nathan-2/) Partner Chennai ![Rohitaashv Sinha, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Rohitaashv-ksk-480x720.webp) ### [Rohitaashv Sinha](https://ksandk.com/people/rohitaashv-sinha/) Partner New Delhi ![Siddartha Karnani, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Siddartha-Karnani-ksk-480x720.webp) ### [Siddartha Karnani](https://ksandk.com/people/siddartha-karnani-2/) Partner Mumbai ![Sindhuja Kashyap, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Sindhuja-Kashyap-ksk01-480x720.webp) ### [Sindhuja Kashyap](https://ksandk.com/people/sindhuja-kashyap/) Partner New Delhi ![Smita Paliwal, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Smita-Paliwal-ksk-e1779971308392-720x698.webp) ### [Smita Paliwal](https://ksandk.com/people/smita-paliwal/) Partner Bangalore ![Sukrit Kapoor, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Sukrit-ksandk-480x720.webp) ### [Sukrit Kapoor](https://ksandk.com/people/sukrit-kapoor/) Partner New Delhi ![Surbhi Kapoor, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Surbhi-Kapoor-ksk-480x720.webp) ### [Surbhi Kapoor](https://ksandk.com/people/surbhi-kapoor/) Partner New Delhi ![Vipin Upadhyay, Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Vipin-Upadhyay-ksk._-529x720.webp) ### [Vipin Upadhyay](https://ksandk.com/people/vipin-upadhyay/) Partner Bangalore ![Gaurav Singh Gaur, Associate Partner, King Stubb & Kasiva](https://ksandk.com/wp-content/uploads/Gaurav-Singh-ksk-484x720.webp) ### [Gaurav Singh Gaur](https://ksandk.com/people/gaurav-singh-gaur/) Associate Partner Bangalore Scroll sideways for all 20 partners, or [meet the full team](https://ksandk.com/people/). ## Frequently asked questions ### When did the India–UK FTA come into force? + The India–UK Comprehensive Economic and Trade Agreement (CETA) entered into force on 15 July 2026, alongside the companion Double Contributions Convention on social security signed on 10 February 2026. Its obligations apply now, though many of the tariff reductions phase in over several years. ### Is the India–UK FTA the same thing as CETA? + Yes. CETA, the Comprehensive Economic and Trade Agreement, is the formal name of the agreement widely reported as the India–UK Free Trade Agreement. The two terms refer to the same instrument. ### Does my product automatically get the lower tariff? + No. Preferential rates apply only to goods that satisfy the agreement’s rules of origin, and those criteria vary by product line. A product manufactured in India can still fail the test if enough of its value or processing originates elsewhere. Claiming preference without meeting the criteria creates customs exposure instead of a saving. ### What happens if my product uses Chinese components? + It depends on how much value those components carry and what processing happens in India or the UK. Third-country inputs are not automatically disqualifying, but they are the most common reason an origin claim fails. This needs assessing product by product, before you claim. ### How does the agreement change employee secondments? + The Double Contributions Convention, in force from 15 July 2026, lets detached workers posted between India and the UK stay in their home social security system for up to 60 months rather than the 36 originally proposed, avoiding double contributions. That changes the cost of an assignment, and it interacts with tax residence and permanent-establishment risk. ### Do our existing supply contracts need to change? + Often, yes. Contracts negotiated before the CETA typically allocate duty, customs and origin-compliance risk on assumptions that no longer hold. Who bears the cost of a failed origin claim, who holds the documentation, and who benefits from a duty reduction are all worth revisiting. ### Can UK lawyers, accountants and architects now practise in India? + The agreement contains services commitments affecting professional services, but access is neither automatic nor uniform across professions, and domestic regulatory rules continue to apply. The position differs by profession, so check it before making commitments. ### Which sectors benefit most from the India–UK FTA? + Textiles, pharmaceuticals, automotive components, food and agriculture, and IT and business services are among the most directly affected, though the effect differs sharply within each. The sector analyses above set out where the opportunity and the compliance burden sit. ### Is there a minimum percentage of local content for goods to qualify? + No. The rule that applies to your product is set line by line in the schedule of product-specific rules, and any value-content requirement sits inside that rule. A 40% figure is widely quoted online, but UK Government guidance gives it as a worked example for one product line. The reliable answer is the rule for your own tariff line. ### What do we have to do before claiming preferential treatment? + UK exporters register with HMRC against their EORI number before completing origin declarations, and declarations must be dated on or after 15 July 2026. For goods going into India, an authenticated origin declaration is submitted to CBIC from a registered address and a unique reference number is issued, which supports the claim at import. Registration is a precondition; a claim made before it completes is exposed. ### Are the tariff reductions immediate? + Some are; many stage over several years. UK Government guidance shows gearboxes at HS 8708.40, for example, moving from a 16.5% base rate to 14.85% for 2026 and reaching zero only in 2035. Anyone modelling landed cost on the headline “tariffs eliminated” will be wrong for years on those lines. ### What proportion of trade is actually covered? + UK Government guidance states the agreement eliminates or reduces tariffs on 90% of Indian imports of UK goods. Coverage is not immediate zero duty, and it does not mean your particular line qualifies. The staging schedule and the rules of origin both sit between coverage and a saving you can bank. ## Get in touch Send us the specifics and we will route your enquiry to the right team. 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