The unfinished business of the India-U.K. trade deal | Explained
The India-U.K. trade deal has been implemented, but significant gaps remain regarding investment protections and dispute resolution mechanisms. India's 2017 cancellation of bilateral investment treaties continues to complicate negotiations with foreign investors.
Why it matters
The lack of a comprehensive investment treaty creates uncertainty for international businesses and impacts the long-term efficacy of the trade agreement.
The story so far: The India-U.K. Comprehensive Economic and Trade Agreement (CETA) came into force on July 15, 2026, cutting tariffs on 99% of Indian exports and loosening some mobility rules for professionals. But, as even Commerce Minister Piyush Goyal has said in the past , problematic issues have been left out of the deal, leaving the trade deal to include only those where there was agreement. There are three such key issues that remain unaddressed.
Although the title CETA includes the word ‘economic’, it is missing a dedicated section on investments, which does appear in other deals that India has negotiated, such as those with the European Free Trade Association (EFTA) and New Zealand .
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