India–UK CETA comes into force; Telangana well poised to reap benefits

Flag-off of the Telangana export consignments at ICD Sanathnagar, Hyderabad, to the United Kingdom, as the India–UK Comprehensive Economic and Trade Agreement (CETA) comes into force on Wednesday (July 15, 2026) | The agreement is expected to provide substantial opportunities for the State’s export-oriented industries by reducing or eliminating tariffs on a wide range of products. Besides, it will improve market access, simplify customs procedures and enhance regulatory cooperation, the State government said.Products exported to U.K.The U.K. is an important export destination for the State, with the exports valued at $402.5 million during 2025-26. Telangana’s exports to the U.K. are dominated by high-value manufactured and knowledge-intensive products, reflecting the State’s strong industrial ecosystem. The exports include drug formulations and biologicals at $116.4 million; electronic instruments – $110.4 million; residual chemicals and allied products – $30.2 million; electrical machinery and equipment – $24.3 million; construction machinery – $15.3 million and organic chemicals – $13.4 million. Bulk drugs and drug intermediates, electronics components, optical and medical instruments and engineering goods and specialty chemicals are part of exports from Telangana.The Industries Department, which marked the occasion by organising a flag off of export consignments from Telangana for the United Kingdom, said tariff elimination under the CETA will be to the State’s advantage. Thus far, several products exported faced high tariffs. Textiles used to attract up to 12%, leather products up to 16%, gems and jewellery up to 4%, chemicals from 4% to 8% and machineries from 8% to 14 %. With the CETA, the duties will become zero and goods from Telangana will become very competitive in the UK market thereby paving the way for higher exports from the State.The State is well placed to emerge as one of the leading beneficiaries of the landmark trade agreement, the Department said in a note. Among sectors and products likely to benefit are pharmaceuticals and life sciences; electronics and precision engineering; engineering goods and industrial machinery; and chemicals and specialty chemicals.The India–UK CETA is expected to enhance competitiveness of the State exporters through preferential tariff access, encourage greater participation of MSMEs in global value chains and attract investments into export-oriented manufacturing. It is likely to strengthen collaboration in pharmaceuticals, digital technologies, electronics and advanced manufacturing, while promoting employment generation through export-led industrial growth as well as facilitate diversification of Telangana’s export basket.Though currently they form a smaller share of exports, processed foods, rice, spices, fruits, essential oils and value-added agri-products also are likely to have significant growth potential under the agreement.Flag-off of the Telangana export consignments at ICD Sanathnagar, Hyderabad, to the United Kingdom, as the India–UK Comprehensive Economic and Trade Agreement (CETA) comes into force on Wednesday (July 15, 2026 | Video Credit: SIDDHANT THAKUR Published - July 15, 2026 11:45 am IST