Economy · 16 Jul 2026

India-UK CETA tariff provisions

Consider the following statements regarding the India-UK Comprehensive Economic and Trade Agreement (CETA) and the Double Contributions Convention (DCC), which came into force on July 15, 2026:

  1. The UK has eliminated tariffs on 99 percent of Indian exports with immediate effect from the date the agreement came into force.
  2. India has granted the UK immediate, full duty-free access for automobiles and Scotch whisky, mirroring the UK's tariff treatment of Indian textiles.
  3. The Double Contributions Convention exempts certain temporary Indian professionals from UK social security contributions for a defined period.
  4. The agreement introduces a self-declaration system for Rules of Origin, replacing a more rigid certification-based model.

How many of the above statements are correct?

AOnly one
BOnly two
COnly three
DAll four
This question is based on: India-UK CETA: The Textile Exporter's Decade-Long Wait Just Ended
Take this in full test mode → Instructions for 16 Jul 2026
About this question

Why in news

The India-UK CETA and the Double Contributions Convention came into force on July 15, 2026, marking India's first comprehensive trade agreement with a developed G7 economy.

Why for UPSC

UPSC has tested protectionism and trade macroeconomics before (2018, GS3); this question tests whether aspirants correctly grasp CETA's deliberately asymmetric design rather than assuming a "mirror" tariff-cut structure between the two countries.

Prelims summary

CETA grants India's labour-intensive exports instant UK duty-free access, while India offers only phased protection for sensitive sectors like autos and whisky; the DCC separately exempts Indian professionals from UK social security contributions for up to 60 months.

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