India-UK JETCO Meets for the First Time Since the Trade Deal Came into Force: £1 Billion in New Deals
India and the United Kingdom held a meeting of the Joint Economic and Trade Committee (JETCO) in New Delhi. It was co-chaired by India's Union Commerce and Industry Minister and the UK's Business and Trade Secretary.
This was the first JETCO meeting since the India-UK Comprehensive Economic and Trade Agreement (CETA) came into force on 15 July 2026. In October 2025, the two sides had agreed that JETCO would become the main body to oversee how CETA is put into practice.
UK companies announced new deals worth over £1 billion during the visit. With this, deals worth nearly £12 billion have been announced since CETA was signed in July 2025.
Focus sectors include aviation services, artificial intelligence, healthcare, advanced communications and engineering. A UK trade mission of more than 100 businesses and seven mayors from northern England is visiting Delhi and Mumbai.
India's Commerce Ministry said European carmakers may shift production to India to stay competitive. In its trade deals with the UK and the EU, India has given car tariff cuts only within fixed yearly limits, called quotas.
CETA is expected to raise India-UK trade by £25.5 billion a year by 2040. Scottish producers see export chances for products like salmon and whisky.
India-UK Comprehensive Economic and Trade Agreement (CETA)
The India-UK CETA is a free trade agreement between India and the United Kingdom. It removes or cuts import taxes (tariffs) on most goods the two countries trade, and makes it easier to sell services and for professionals to work in each other's markets. It was signed in London on 24 July 2025 and came into force on 15 July 2026, together with a separate social security deal called the Double Contribution Convention.
This JETCO meeting is the first review of CETA after it came into force. The £1 billion in new deals and the push for sectors like aviation, AI and healthcare show both sides trying to turn the agreement's tariff cuts into real trade and investment.
Free Trade Agreements: Concept and WTO Framework
A Free Trade Agreement (FTA) is a deal between two or more countries to remove or sharply cut tariffs on most of the goods they trade with each other. Modern FTAs also cover services, investment, rules on where a product is "made" (rules of origin) and other areas. World Trade Organization (WTO) rules normally say a country must treat all members equally, but Article XXIV of the GATT allows FTAs as an exception, as long as they cover "substantially all trade" between the partners.
The India-UK deal is one of India's newest FTAs with a developed economy. The JETCO meeting shows the follow-up work every FTA needs after signing: reviewing results, settling issues and helping businesses use the tariff cuts.
Tariff-Rate Quota (TRQ) Mechanism
A tariff-rate quota, or TRQ, is a two-level import tax. A country lets a fixed quantity of a product come in at a low tax (the in-quota rate). Anything imported beyond that quantity pays a much higher tax (the out-of-quota rate). So a TRQ is a middle path between fully opening a market and fully closing it.
The car tariff cuts that India gave the UK (and the EU) work through tariff-rate quotas. This is why European carmakers may find it cheaper to build cars in India than to ship large numbers in: imports beyond the yearly quota still face India's high car duties.
- JETCO: India-UK Joint Economic and Trade Committee; made the main body to oversee CETA in October 2025
- CETA signed: 24 July 2025 (London); in force: 15 July 2026
- New deals announced: over £1 billion; total since signing: nearly £12 billion
- Expected rise in bilateral trade: £25.5 billion a year by 2040
- UK trade mission: over 100 businesses and 7 mayors from northern England
- Focus sectors: aviation services, AI, healthcare, advanced communications, engineering
- Car duty under CETA: about 110% down to 10%, only within yearly quotas