The EU imported green energy products in 2025 for more than twice what it exported

India's merchandise exports to the United Kingdom rose 8% on an annualised basis to $2.43 billion in August and September 2026, the first two full months after the India-UK free trade agreement came into effect in mid-July. According to the latest data, goods imports from Britain fell by 16.8% during the same period to $1.36 billion. The India-UK Comprehensive Economic and Trade Agreement (CETA) became operational on July 15, 2026. Prior to this, India’s merchandise exports to the UK had fallen about 4.2% to $1.2 billion in July 2026 compared to $1.25 billion in July 2025. However, exports saw a double-digit year-on-year growth of over 10% to $1.26 billion in August 2026 and increased by about 5.5% to $1.17 billion in September 2026. Imports from the UK declined in September 2026. Shipments of British merchandise rose by nearly 12% to $639 million in July 2026 from $571 million in July 2025. In August, imports surged over 24% to $733 million before recording a sharp 40% fall to $630 million in September 2026 compared to $1.05 billion in the same month of the previous year. Both economies have yet to fully realize the potential of CETA as traders from both sides prepare for future developments. Government officials and trade experts noted that the trend is positive, with August showing robust mutual gains. The sharp decline in imports from the UK in September is attributed to a drop in imports of precious metals like silver. Provisional trade data for the first half of 2026-27 revealed that India’s merchandise exports to the UK rose by 7.22% to $7.32 billion in April-September 2026 compared to $6.83 billion in the same period in 2025. Meanwhile, India’s merchandise imports from the UK recorded a 1.6% decline to $4.06 billion in the first half of 2026-27 compared to $4.13 billion in the first half of 2025-26. Experts anticipate that imports from the UK will grow over time due to eased import quotas for high-value items such as automobiles and whiskies. For Britain, CETA eliminates or reduces tariffs on 90% of tariff lines, covering about 92% of India’s goods imports from the UK. This includes key UK exports such as whiskies and gin, with tariffs reduced from 150% to 75% at entry into force and further down to 40% after staging. UK car manufacturers benefit from a quota reducing the tariff from up to 110% to 10%. The India-UK CETA offers zero-duty access for nearly 99% of India’s exports, covering almost 100% of trade value. These items include labor-intensive products such as textiles, leather goods, marine products, gems and jewellery, toys, engineering goods, chemicals, and auto components. In addition to tariff elimination, CETA simplifies rules of origin, enhances services trade, and promotes professional mobility. A Double Contribution Convention between the two countries exempts workers and their employers from paying social security contributions.