India – New Zealand FTA: Expanding Trade Access, a US$ 20 Billion Investment Commitment, and Mobility for Skilled Professionals

by Zen Webnet | Nov 10, 2026 | In the news

New Delhi, 10 November 2026
By Tushar Gandhi and Anjali Batra

The India-New Zealand Free Trade Agreement (FTA) is India’s first trade pact with New Zealand and part of a broader effort to deepen engagement across the Indo-Pacific. Talks launched on 16 March 2025 and concluded on 22 December 2025, making this one of India’s fastest negotiations with a developed economy. Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay signed the agreement in New Delhi on 27 April 2026, and it entered into force on 20 October 2026.

Under the agreement, New Zealand removes 100% tariffs on Indian exports. Alongside, as part of the FTA, New Zealand also introduces US$ 20 billion FDI into India and eases mobility pathways and work opportunities for Indian professionals and students.

India’s Market Access Offer for New Zealand
India has opened access to New Zealand imports on 70.03% of tariff lines, covering about 95% of current bilateral trade by value, while protecting sensitive domestic sectors including dairy, sugar and select agricultural products. The offer is structured in four parts: 

• 30% Immediate Duty Elimination –  Applicable to goods including wood, wool, sheep meat and raw hides. 
• 35.60% Phased Reduction – Phased out over 3,5,7, and 10 years. Includes goods such as petroleum oil, vegetable oils, and selected machinery. The immediate group is weighted towards inputs such as wooden logs, coking coal and metal scrap, which Indian manufacturers buy.
• 4.37% Duty Reductions – Offers partial/reduced tariffs across products like wine, pharmaceuticals, polymers, aluminium, iron, steel etc. 
• 0.06% Tariff Rate Quotas (TRQs) – Includes select sensitive agricultural and horticultural items. 

A few sensitive domestic sectors were excluded from tariff relaxation in interest of protecting millions of small producers. This includes dairy, staples such as sugar, edible oil, onion, chickpea, maize, base metals, gems, jewellery, arms, and ammunition. 

What’s In It for Indian Exporters?
For Indian exporters, the agreement offers 100% duty-free access across all Indian tariff lines for export into New Zealand as opposed to 10% duties phased across a few sectors. This particularly benefits labour-intensive sectors spanning across textiles, apparel, leather, footwear, pharmaceuticals, and engineering goods. 

With New Zealand’s textile and apparel market valued at around US$ 2.2 billion in 2024, compared to Indian sales of about US$ 103 million, the duty-free export presents significant room for growth. In terms of pharmaceuticals, New Zealand agreed to accept GMP and GCP inspection reports from trusted regulators like US FDA, UK MHRA, and European Medicines Agency to reduce duplicate inspections and enable faster entry of Indian generic drugs. Also, India’s US$ 136.34 million of engineering goods exports represents 0.6% of New Zealand’s total US$ 23.3 billion import market, bringing significant growth opportunities for India. 

Dairy products (milk, cream, whey, yoghurt and cheese) remain excluded, as do animal products other than sheep meat. On the agricultural front, India will implement a quota system for importing apples, kiwifruit, manuka honey, and albumins from New Zealand at concessional duty rates. This framework aims to protect domestic farmers while regulating the imports.  Tariff-rate quotas allow a fixed volume at a lower duty, with minimum import prices, seasonal windows and volume caps limiting entry.

Two questions will decide whether this works. The first is whether the minimum import price and seasonal windows are enforced at the border, since they protect domestic prices. The second is whether the Centres of Excellence reach growers, in the case of apples most likely in hill states such as Himachal Pradesh and Jammu and Kashmir.

The agreement addresses part of the non-tariff cost. It has dedicated sanitary and phytosanitary and technical barriers to trade chapters, electronic certification, clearance of standard cargo within 48 hours (24 hours for express and perishable goods), and acceptance of inspection reports for pharmaceuticals from comparable regulators. Exporters must also meet product-specific rules of origin to claim zero duty

Beyond trade in goods, New Zealand has provided for trade in traditional medicine, including Ayurveda and yoga, for the first time in any of its trade agreements, alongside cooperation on medical value travel and wellness services. The agreement also provides for cooperation on export readiness, trade information and linkages with New Zealand’s small-business ecosystem, with a focus on MSMEs owned by women and youth. An interim arrangement recognising organic certification took effect on day one, with a full review due in October 2027. 

Mobility: Routes to Skilled Movement and Employment
The agreement creates a Temporary Employment Entry (TEE)  pathway with a quota of 5,000 visas for skilled Indians, for stays of up to three years. The TEE pathway allocates the 5,000 places across sectors: 1,200 in healthcare, 1,000 in IT, 1,000 in engineering, 700 in construction, 500 in education, and 600 across occupations including chefs, Ayurveda practitioners and yoga instructors. Indian workers on temporary stays are exempted from New Zealand’s social security contributions. 

The agreement also sets terms for Indian students. Indian students face no cap on numbers and can work at least 20 hours a week, a minimum written into the treaty. Graduates can remain in New Zealand to work for up to two years after a bachelor’s degree, three years after a STEM bachelor’s or master’s degree, and four years after a doctorate, with the doctoral provision applying from 16 November 2026. Up to 1,000 Indians aged 18 to 30 can also work in New Zealand each year under a working-holiday scheme due within two years.

Investment: A Promise to Promote
New Zealand’s US$  20 billion commitment runs over 15 years, approximately US$  1.3 billion a year. It equals approximately 4.7 per cent of New Zealand’s total overseas investment of US$  422.6 billion as of March 2025. The release pairs the commitment with joint strategies to promote investment in renewable energy, digital services and modern infrastructure, and with a Rebalancing Clause to address any shortfall in delivery.

The clause suggests both governments expect that money may not arrive on schedule. Investment decisions are likely to sit with private firms and funds, so the pledge is best read as a target the two governments will work to meet, not a sum New Zealand has set aside. The summary does not say what the clause requires once a shortfall is identified.

What the Ministry’s Summary Does Not Address

• No estimate of jobs. The summary expects employment gains in textiles, leather and engineering but gives no figure.
• No quota volumes or minimum import prices for the TRQ products.
• No consequence if the Joint Agriculture Productivity Council finds that an action plan has not been delivered, including whether a quota can be reduced.
• No detail on what triggers the Rebalancing Clause or what it requires.

Overall Assessment
The agreement is a cautious opening. India accepts competition on inputs, on lines phased over up to ten years and on small quotas for a few farm products, and keeps dairy and other sensitive lines out. The gains most likely to arrive first are for exporters in labour-intensive sectors, where tariffs of up to 10 percent have been removed. The rebalancing mechanism gives India a lever if investment or agricultural-productivity delivery falls short, and the quota terms give New Zealand a lever if import volumes exceed agreed thresholds. This makes the commitments conditional on performance.

Exporters and MSME clusters need to prepare for rules-of-origin and certification requirements. Apple and honey growers, and the state horticulture departments that serve them, will feel the quota terms and the Council’s monitoring most directly. The Ministry of Commerce and Industry could allow independent assessment by publishing quota utilisation, visas issued and investment received.

Four figures will settle the verdict: export growth in labour-intensive sectors, Temporary Employment Entry visas actually issued, investment that lands against the US$  20 billion, and the prices Indian apple and honey growers receive once quota imports begin.

References

1. Press Information Bureau (PIB), Ministry of Commerce and Industry, “India – New Zealand Free Trade Agreement Signed”, 27 April 2026.
   https://static.pib.gov.in/WriteReadData/specificdocs/documents/2026/apr/doc2026427857501.pdf
2. Ministry of Foreign Affairs and Trade, New Zealand, “New Zealand-India Free Trade Agreement”. https://www.mfat.govt.nz/indiafta 

India’s EV Sales Up 74% to 3.33 Lakh in September 2026 as Adoption Increases Across Vehicle Segments

by Zen Webnet | Nov 6, 2026 | In the news

New Delhi, 06 November 2026
By Anjali Batra

In September 2026, India sold 3.33 lakh electric vehicles (EVs), an increase of 74% over the same month last year. This is the highest monthly figure on record, as per retail sales data from the Federation of Automobile Dealers Associations (FADA), the national body representing vehicle dealers across India.

Segment Performance and Market Composition
The sales data point to underlying demand alongside continued incentives. Every vehicle category grew compared to the same month last year, but two-wheelers (scooters and motorcycles) made up the largest share of total EV sales.

Growth in the sale of EVs is on a more stable base than last year. There was a GST on small petrol and diesel cars from 28% to 18% while leaving the 5% EV rate unchanged, narrowing the price gap. Two-wheelers were the main driver of EV sales. More than one in every ten scooters and motorcycles sold in India is now electric. At a penetration of 65%, three-wheelers have the highest penetration of EVs, reflecting their lower running and ownership costs. Given this high adoption, future growth will depend less on convincing new customers and more on making loans and charging points easier to access.

Passenger cars are growing steadily. About one in every twelve cars sold is now electric. Further, Delhi exempts electric cars priced up to ₹30 lakh from road tax and registration fees, a state-level tax relief.

Electrification of heavy commercial vehicles remain at an early stage of adoption, largely because heavy-duty transport requires specialised charging infrastructure, high-capacity power connections and reliable routes that support long-distance operations. However, the segment is gaining attention from both the government and industry as India seeks to decarbonise road transport and reduce its dependence on imported crude oil. Heavy-duty trucks make up about 3% of India’s vehicle fleet but produce over half of its particulate matter emissions and about 34% of road-transport carbon dioxide emissions. High upfront costs, charging infrastructure and operating requirements limit adoption. Electric commercial vehicle retail was 4,188 units in September, up 158% year on year from roughly 1,600 units.

Extension on Incentive to Electric Two-Wheelers
The central incentive for electric two-wheelers was scheduled to end on 31 July 2026. On 10 August 2026, the Ministry of Heavy Industries extended it to 31 March 2028. The incentive is ₹2,500 per kilowatt-hour (kWh) of battery capacity, capped at ₹5,000 per vehicle, compared with ₹5,000 per kWh and a ₹10,000 cap in 2024–25.

Electric two-wheeler retail sales, July-September 2026

Electric two-wheeler sales fell 10.35% in August and rose 13.16% in September. Total EV retail sales followed a similar pattern: they fell 8.98% in August to 2,98,448 units, then rose 11.79% in September. Electric passenger-car sales increased 9.66% between July and September period, from 32,928 to 36,108 units. Electric three-wheeler sales fell 1.18%, from 87,055 to 86,024 units.

Factors That Could Slow Momentum
FADA identifies four risks to watch in the coming quarter:

• Price increases. Dealers identify further vehicle price increases as a key risk because they could erode the affordability gains from GST 2.0 in ICE vehicles.
• Year-on-year comparisons. October–December 2025 was the first full quarter after GST 2.0 and included pent-up demand, making year-on-year growth harder to sustain.
• Dealer inventory. Passenger-vehicle stock rose by five days from the end of August to about 43-45 days, above FADA’s recommended level of 21 days. Around 60% of passenger-vehicle dealers reported higher stock ahead of the festive season. These figures cover all passenger vehicles, not EVs alone.

 References

1. 1. Federation of Automobile Dealers Associations, “FADA Releases Sep’26 Vehicle Retail Data,” press release, 6 October 2026 (official release). https://fada.in/images/press-release/16ac46ad2e0388FADA%20Releases%20September%202026%20Vehicle%20Retail%20Data.pdf
   2. Kotak Neo (Times of India), “India hikes petrol and diesel prices by 90 paise; second fuel price hike this week,” 19 May 2026 (secondary report). https://kotakneo.com/news/market-news/india-petrol-diesel-price-hike-may-19-2026-crude-oil-west-asia/
   3. HDFC Sky, “Petrol, Diesel Prices Today, September 8, 2026” (secondary report). https://hdfcsky.com/news/petrol-diesel-prices-today-september-8-2026-check-fuel-rates-in-delhi-mumbai-kolkata-bengaluru-chennai
   4. electrive, “India extends subsidies for electric two-wheelers and rickshaws,” 30 March 2026 (secondary report on PM E-DRIVE, the Prime Minister’s Electric Drive Revolution in Innovative Vehicle Enhancement scheme). https://www.electrive.com/2026/03/30/india-extends-subsidies-for-electric-two-wheelers-and-rickshaws/
   5. electrive, “Delhi tightens EV programme and bans internal combustion vehicles,” 30 June 2026 (secondary report). https://electrive.com/2026/06/30/delhi-tightens-ev-programme-and-bans-internal-combustion-vehicles
   6. Outlook India, “Delhi’s EV Policy Is Here: A Guide To Subsidies, Tax Waivers And Bans” (secondary report). https://www.outlookindia.com/national/delhis-ev-policy-is-here-a-guide-to-subsidies-tax-waivers-and-bans
   7. Telangana Today, “India clocks record 3.28 lakh EV retail sales in July, says FADA,” 7 August 2026 (secondary report of FADA data). https://telanganatoday.com/india-clocks-record-3-28-lakh-ev-retail-sales-in-july-says-fada
   8. Morung Express, “EV retail sales hit record August high of 2.98 lakh units, penetration rises to 12.3 pc: FADA” (secondary report of FADA data). https://morungexpress.com/ev-retail-sales-hit-record-august-high-of-298-lakh-units-penetration-rises-to-123-pc-fada
   9. Autocar Professional, “Passenger Vehicle Retail Rises 32.10% In September 2026: FADA,” 5 October 2026 (secondary report of FADA data). EVFY, “India crosses 52,700 public EV charging stations” (secondary report of a July 2026 Lok Sabha reply). https://evfy.in/news/india-crosses-52700-public-ev-charging-stations-heres-what-it-means-for-ev-owners
   10. Outlook Business, “India hits 10 million EV mark but charging network struggles to keep pace” (secondary report). https://www.outlookbusiness.com/news/india-hits-10-million-ev-mark-but-charging-network-struggles-to-keep-pace
   11. Bajaj Broking, “RBI Hikes Repo Rate by 25 bps to 5.50%: Know the Impact,” 7 October 2026 (secondary report of an RBI decision). https://www.bajajbroking.in/share-market-news/rbi-hikes-repo-rate-by-25-bps-to-5-50percent-know-the-impact
   12. Ministry of Heavy Industries, PM E-DRIVE portal, notice that the terminal date for electric two-wheelers is extended to 31 March 2028 by an amendment notification dated 10 August 2026 (official). https://pmedrive.heavyindustries.gov.in/
   13. electrive, “India extends e-2W incentives under PM E-DRIVE scheme, increases total outlay,” 14 August 2026 (secondary report; includes closure of the L5 component on 26 December 2025). https://www.electrive.com/2026/08/14/india-extends-e-2w-incentives-under-pm-e-drive-scheme-increases-total-outlay/
   14. EVFY, “PM E-DRIVE Scheme Extended to March 2028: Revised Outlay & Guidelines” (secondary report; incentive rates for 2024–25 and from April 2025). https://www.evfy.in/news/pm-e-drive-scheme-extended-to-march-2028
   15. Autocar India, “PM E-Drive subsidy for electric two-wheelers extended to March 2028,” 12 August 2026 (secondary report; component closure if allocation is exhausted). https://www.autocarindia.com/industry/pm-e-drive-subsidy-for-electric-two-wheelers-extended-to-march-2028-440459
   16. Open, “India’s Auto Retail Hits Record September Sales of 25.37 Lakh Units” (secondary report of FADA data; 31.82% growth and base distortion). https://openthemagazine.com/business/indias-auto-retail-hits-record-september-sales-of-2537-lakh-units
   17. Angel One, “FADA Releases September 2025 Auto Sales Data: GST Reforms Fuel Festive Momentum,” 7 October 2025 (secondary report of FADA data; 18,27,337 units). https://oga-prod.angelone.in/news/economy/fada-releases-september-2025-auto-sales-data-gst-reforms-fuel-festive-momentum
   18. Ackodrive, “EV Retail Sales Hit Record High As Sales Nearly Double In September: FADA” (secondary report of FADA data; September 2025 EV and electric passenger-vehicle base). https://ackodrive.com/news/ev-retail-sales-hit-record-high-as-sales-nearly-double-in-september-fada/
   19. AutoGuide India, “India EV retail sales rise 53% in August on strong two-wheeler and PV demand” (secondary report of FADA data; August 2025 EV base of 1,95,250 units). https://www.autoguideindia.com/auto-makers/sales-report/india-ev-retail-sales-rise-53-in-august-on-strong-two-wheeler-and-pv-demand/
   20. Daily Pioneer (PTI), “EV retail sales rise 53% in August to 2.98 lakh units” (secondary report of FADA data; August 2025 electric passenger-vehicle base of 20,210 units). https://dailypioneer.com/news/ev-retail-sales-rise-53-in-august-to-2-98-lakh-units
   21. Autocar Professional, “Electric PV Sales Stabilise after GST Hit” (secondary report; GST rates under GST 2.0). https://www.autocarpro.in/analysis-report/electric-pv-sales-stabilize-after-gst-hit-131142
   22. Fuels & Lubes Asia, “Delhi EV policy 2.0 bans new petrol two-wheelers by 2028” (secondary report; road tax and registration fee exemption for electric cars up to ₹30 lakh). https://www.fuelsandlubes.com/delhi-ev-policy-2-0-bans-new-petrol-two-wheelers-by-2028/
   23. TERI, “Scoping Study on India’s Tyre Industry: Potential, Challenges & Recommendations,” 23 September 2026 (heavy-duty trucks: 3% of the vehicle fleet, over half of particulate matter emissions). https://teriin.org/policy-brief/scoping-study-indias-tyre-industry-potential-challenges-recommendations
   24. TERI, “Policy Brief: Roadmap for Zero Emission Truck (ZET) Skilling in India,” 5 January 2026 (trucks: 3% of road vehicles, 34% of road-transport CO2 emissions). https://teriin.org/policy-brief/policy-brief-roadmap-zero-emission-truck-zet-skilling-india
   25. WION, “Petrol, diesel prices hiked again across India! Cost increased by 90 paise per litre,” 19 May 2026 (secondary report; Delhi prices before and after the 15 May hike). https://www.wionews.com/india-news/petrol-diesel-prices-hiked-again-cost-increased-by-90-paise-per-litre-see-city-wise-prices-here-1779154597026/amp
   26. Storyboard18, “Petrol price in Delhi crosses Rs 100: What’s driving the increase and what comes next?,” 25 May 2026 (secondary report; Delhi prices of ₹99.51 and ₹102.12). https://www.storyboard18.com/how-it-works/petrol-price-in-delhi-crosses-rs-100-whats-driving-the-increase-and-what-comes-next-99086.htm

The 2026 India UK FTA and the Next Phase of Bilateral Trade

by Zen Webnet | Oct 14, 2026 | In the news

New Delhi, 14 October 2026
By Anjali Batra

The India-UK Free Trade Agreement, officially known as the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA), is a trade pact designed to boost bilateral economic ties, reduce trade barriers and double bilateral trade by 2030. The agreement was signed on 24 July 2025 and entered into force a year later, on 15 July 2026, following 14 rounds of negotiations that opened on 13 January 2022.

Negotiations concluded on 6 May 2025, and the deal was subsequently finalized under UK Prime Minister Keir Starmer, who sought a domestic economic boost, while India looked to secure a major Western trade corridor after its 2019 exit from the Regional Comprehensive Economic Partnership (RCEP). Against this backdrop, bilateral trade between India and the UK stood at £48 billion in 2025. UK government projections estimate that CETA could increase bilateral trade by up to £25.5 billion annually in the long run. The agreement also supports the movement of certain workers through the Double Contributions Convention (DCC), which prevents eligible seconded workers from paying social-security contributions in both countries.

Tariffs Cuts and Market Access Under CETA
India’s average tariff on UK goods fell from 12% to 3%; the UK’s on Indian goods, from 4% to zero. Over 99 percent of Indian exports enter duty-free from day one, including products that previously faced high UK tariffs: 12 percent on textiles, 16 percent on leather, 18 percent on engineering goods, and up to 70 percent on certain processed foods, alongside gems, jewellery, and toys. Meanwhile, sensitive agricultural products like sugar, rice, pork, chicken, and eggs remain excluded. While the agreement delivers broad commercial gains, economic modeling projects that increased competition will lead to a £114 million contraction in Gross Value Added for the UK’s domestic textiles, apparel, and leather sector over the long term. 

On the Indian side, market opening is more gradual. India will remove tariffs on 90% of the products it imports from the UK, covering 92% of the value of its 2022 imports. However, the cuts are phased in: 64% of physical goods export lines become duty-free immediately (worth £1.9 billion, representing roughly 28% of total UK goods exports to India), rising to 85% over ten years. Dairy, cereals and edible oils stay outside the deal. For example, tariffs on Scotch whisky fall to 75% when the agreement begins and then to 40% by year ten. 

Under the automotive tariff-rate quota framework, the number of qualifying UK-built cars permitted at concessional duties is structured to rise from 20,000 in year one to 37,000 by year five, with import tariffs eventually falling from around 110% down to 10%. However, initial implementation data reveals a much slower actual uptake: following an initial DGFT application window seeking buyers for roughly 5,000 vehicles, the government approved quotas for only 642 cars across seven eligible companies. This stark gap between formal trade allowances and modest early utilization highlights that while the FTA opens wide structural pathways for vehicle imports on paper, real-world market entry remains measured and gradual as manufacturers navigate compliance and distribution.

UK exporters would save an estimated £398 million in duties in year one, rising to £889 million by year ten. For Indian exporters, the estimate is £221 million although the actual gains may be lower because Indian exporters currently use FTA preferences on only 20-30% of eligible trade. The Global Trade Research Initiative (GTRI) notes many of these lines already carried near-zero UK duties before CETA. On day one, India ceremonially sent off 50-plus consignments worth over US$140 million as a symbolic start.

On Intellectual property & the Fine Print
Intellectual Property (IP) rules protect creations such as brand names, inventions, and designs. Chapter 13 of CETA extends UK protection to more than 600 Indian geographical indications, including Darjeeling Tea and Kolhapuri Chappals. India provides similar protection for Scotch Whisky.

On patents, India retained the flexibility provided by its existing patent law. However, the agreement expresses a preference for voluntary licensing (where a patent holder allows others to use a patent) over compulsory licensing, where a government can allow such use without the holder’s consent. Public health advocates and international policy observers have raised concerns that this language could become relevant in future disputes over generic medicines, or cheaper versions of patented drugs. However, the provision is a stated preference and does not override India’s existing patent law.

Traditional knowledge, meaning knowledge passed down within communities, receives more limited protection. The agreement protects against foreign patents being wrongly granted for knowledge that is genuinely Indian, but does not create a separate IP right for traditional knowledge. Copyright, trademarks, designs, trade secrets and enforcement are also covered. The enforcement provisions cover border measures, civil and criminal remedies, and domain-name disputes.

Movement of workers
Regarding visas, CETA also made it easier for some professionals to work in each other’s country. Intra-corporate transferees (employees moved within the same company) can stay for up to three years, with the possibility of a further two-year extension. Business visitors can stay for up to 90 days without undergoing an economic-needs test, which is a burdensome regulatory check that normally forces companies to prove that no local worker is available before hiring foreign personnel. By waiving this requirement, the agreement significantly streamlines short-term corporate mobility and professional travel. Contractual specialists (professionals hired for a specific contract) can stay for up to one year. A narrow, named-occupation route is subject to a combined annual cap of 1,800 visas shared across chefs, yoga instructors, and classical musicians. The UK Home Office and Indian visa rules still apply on top of all of these.

With respect to social security, the Double Contributions Convention (DCC) exempts seconded workers (employees temporarily transferred by their employer to work in the other country) from paying social-security contributions in both countries for up to five years. Under this arrangement, such employees keep paying into their home country’s system, such as India’s Employees’ Provident Fund or UK National Insurance, while remaining exempt from social-security contributions in the host country for up to 60 months. The DCC therefore reduces the cost of temporarily transferring employees between the two countries.

What CETA does not change
Beyond the tariff cuts, several legal and practical realities shape how CETA works in practice. 

• Other taxes still apply. Zero-duty access removes only import tariffs. Domestic taxes such as GST and IGST (India’s Goods and Services Tax and its version on imports) and VAT (the UK’s value-added tax) apply in full. 
• CETA has no investment chapter, meaning disputes are handled strictly between governments through the Joint Committee rather than through investor-state arbitration, which would allow a company to bring a claim directly against a government.
• Digital provisions ban governments from forcing companies to hand over software code, while still allowing rules that require data to be stored locally inside the country.
• The technical chapters encourage the use of international product standards and recognition of each other’s product testing. They do not create one common set of product rules.
• Bilateral safeguard mechanisms, which let a country temporarily raise tariffs or suspend tariff concessions when a sudden increase in imports seriously harms or threatens domestic industry, remain available.
• Mutual recognition of professional qualifications (each country accepting the other’s qualifications) for legal, accounting and architectural services remains pending, with frameworks due to be established by July 2027.

Two important UK measures also sit outside CETA but will affect Indian exporters. First, the UK’s Carbon Border Adjustment Mechanism (CBAM), which puts a price on the carbon emissions linked to certain imported goods, will apply to Indian aluminum, cement, fertilizer, hydrogen, iron, and steel exports starting 1 January 2027. However, this impact may be reduced because the UK recognizes India’s domestic carbon credit scheme, allowing exporters to claim relief by proving they already paid a carbon price at home. Second, the UK’s national steel safeguards (import limits introduced in July 2026 to protect domestic steel) sit outside the CETA framework, but a separate bilateral understanding ensures that 85 percent of Indian steel exports are exempt from these import restrictions.

Sectoral Highlights and Industrial Impact 

1. Manufacturing and industrial trade: India’s engineering exports to the UK, spanning machinery, electrical equipment and auto components, are positioned for substantial expansion, supported by zero-duty entry and manufacturing clusters across Tamil Nadu, Karnataka, Uttar Pradesh, Maharashtra, Gujarat and Telangana. UK machinery and aerospace exporters also gain reciprocal duty reductions. 
2. Technology and services: CETA sets a baseline for cross-border services and mobility. Advanced technology cooperation and high-value digital investment are being pursued separately through the UK-India Technology Security Initiative (TSI).. 
3. India’s wider trade strategy: CETA is India’s fifteenth bilateral trade agreement in force. It supports a strategy of building trade routes with many partners, reducing India’s exposure to shocks in any one market. The agreement is also expected to increase the long-term GDP of both economies.
4. Compliance: claim zero duty, exporters must prove their goods qualify under the agreement’s rules of origin, which determine whether a product is considered to come from India or the UK. CETA uses origin self-certification, meaning the exporter declares the origin itself, through the DGFT’s e-CoO 2.0 online platform in India and HMRC (His Majesty’s Revenue and Customs, the UK tax authority) frameworks in the UK. There is a 48-hour target for customs clearance for compliant consignments, with oversight from the Joint Committee. The first certificates of origin under CETA were issued through India’s eCoO 2.0 platform on a self-certification basis.

Future Milestones and Implementation Checkpoints
Looking ahead, several critical milestones will shape the long-term performance of the trade agreement. India’s trade network extends beyond the UK, and competition from other partners will shape how much value CETA ultimately delivers. Chief among these is the anticipated early-2027 finalisation of the EU-India trade accord, which could narrow the UK’s initial first-mover advantage as India expands its network of major European trade partners.

Domestically, the pact’s success will be tested by the parallel implementation of the UK’s carbon border adjustment mechanism alongside national steel safeguards. A second test will be whether exporters actually use the preferences available under CETA: the current 20% to 30% utilisation baseline suggests that tariff concessions alone will not guarantee increased trade. On the regulatory front, the July 2027 deadline for mutual recognition frameworks for professional qualifications will provide an early test of whether the agreement can move beyond tariff liberalisation into deeper services integration. Finally, the deal’s ultimate depth depends on whether future Joint Committee sessions will revisit broader labour mobility expansions, moving beyond the current framework’s restrictive focus on short-term intra-corporate transferees, contractual service suppliers, and traditional business-visitor routes.

References

1. Department for Business and Trade (DBT), “UK-India trade deal: conclusion agreement summary,” GOV.UK, published 6 May 2025, updated 15 July 2026. https://www.gov.uk/government/publications/uk-india-trade-deal-conclusion-summary/uk-india-trade-deal-conclusion-summary
2. Business.gov.uk (DBT), “Historic UK-India free trade agreement is in effect,” last updated 3 August 2026. https://www.business.gov.uk/campaign/alive-with-opportunity/the-uk-india-trade-deal/
3. Press Information Bureau (PIB), Ministry of Commerce and Industry, “India and the United Kingdom Unleash a Next Generation Economic Corridor: CETA and Agreement on Social Security Contributions Set to Enter into Force on 15th July 2026,” 17 June 2026. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2274280&reg=48&lang=2
4. UK Parliament, Business and Trade Committee, “UK-India Comprehensive Economic and Trade Agreement (CETA),” Twelfth Report of Session 2024–26, HC 996, 21 January 2026 (Tables 1–3, paras 21, 24–26, 32, 34, 99 and 101, Box 1 and Annexes 2–3). https://publications.parliament.uk/pa/cm5901/cmselect/cmbeis/996/report.html
5. PIB, “India–UK CETA: 99% Tariff Elimination, Stronger Bilateral Trade, Catalyst for Inclusive Growth” (explainer), 27 July 2025. https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=154945&reg=48&lang=2
6. “India-UK FTA: DGFT Clears 642 Cars For Import Under 2026 Vehicle Quota,” KNN (reporting PTI), 17 September 2026. https://knnindia.co.in/news/newsdetails/sectors/exportimports/india-uk-fta-dgft-clears-642-cars-for-import-under-2026-vehicle-quota
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Beyond the Pump: U.S.-India Biofuels Summit 2026 Charts Ethanol’s Future in Aviation, Clean Cooking, and Maritime Transport

by Zen Webnet | Sep 30, 2026 | In the news

By Tushar Gandhi and Anjali Batra

On 22 September 2026, the U.S. Grains & BioProducts Council (USGBC) and the U.S.-India Strategic Partnership Forum (USISPF) convened the U.S.-India Biofuels Summit 2026 in New Delhi. Building on earlier discussions around ethanol blending and feedstock diversification, the summit placed biofuels within a wider policy frame of energy security, rural value creation, industrial competitiveness, and hard-to-abate decarbonisation. India’s ethanol ecosystem is now being assessed not only by its ability to meet fuel blending targets but also by its capacity to support the country’s wider energy needs in sectors such as aviation, clean cooking, and maritime operations. Taking the discussion forward from its inaugural edition in 2024, which identified applications in sustainable aviation fuel (SAF) and clean cooking, this year’s dialogue focused on bringing stakeholders together to discuss implementation roadmaps.

India’s Ethanol Blending Programme (EBP) has created the underlying production, storage, and distribution foundation for this next phase. Blending rates surged from a modest 0.6 percent in 2012–13 to 10 percent in 2022, culminating in the nationwide rollout and consistent 20 percent blending (E20) by 2026. Backing this transformation is an installed distillation capacity of 24 billion litres, producing nearly 20 billion litres of ethanol annually. With E20 fuel blending absorbing approximately 12 to 13 billion litres, India now possesses a domestic surplus for other applications. The policy challenge is therefore shifting from building capacity to directing available resources towards applications that provide the greatest combination of energy security and carbon emission reductions.

Beyond surface transport, SAF emerged as a central pillar of the summit’s agenda. India is currently the world’s third-largest domestic aviation market, with fleet and passenger traffic expected to roughly quadruple by 2040. As international aviation faces progressively stronger carbon-accounting and fuel-intensity requirements, SAF is becoming a strategic issue for airlines, refiners, airports, and fuel suppliers rather than a niche climate intervention. To meet impending decarbonisation mandates, India is uniquely positioned to pursue the Alcohol-to-Jet (ATJ) pathway, capitalising on its domestic ethanol surplus. Representatives from the aviation industry at the summit showcased significant technical milestones, including recent successful SAF demonstration flights conducted with Indian carriers and research institutions. However, bridging the capital expenditure hurdle—with a domestic ATJ facility requiring around ₹3,500 crore—and aligning with international carbon-accounting standards will be vital to making commercial SAF supply cost-competitive by the end of the decade.

Building on these themes, a dedicated panel co-convened by the Global Biofuels Alliance (GBA) focused on the alternative and viable utilisation of surplus domestic ethanol as an immediate, transformative opportunity in the clean cooking segment. With volatile international energy markets continuing to disrupt imported commercial LPG supplies, ethanol provides a reliable, domestically refined solution. Global deployment models, particularly across East Africa, successfully demonstrated the commercial appeal of this fuel. In countries like Kenya and Uganda, early ethanol distribution networks rapidly scaled to over a million households by offering a clean alternative up to 40 percent cheaper than traditional charcoal.

India’s superior distillery infrastructure and extensive oil marketing distribution reach give it a structural advantage to implement bioethanol cooking on a national scale. Transitioning commercial kitchens, street vendors, and institutional canteens to ethanol insulates businesses from import shocks. Furthermore, creating a fuel-agnostic clean cooking policy framework would unlock affordable clean cooking for low-income and migrant households while generating assured demand for domestic farmers.

The summit also turned its attention to a new frontier – Sustainable Marine Fuel. The International Maritime Organization (IMO) has introduced its Net-Zero Framework, mandating stringent Greenhouse Gas Fuel Intensity benchmarks for large vessels starting in the coming years. With alternative fuels currently making up barely 2 percent of the global marine mix, ethanol is emerging as a practical, high-volume alternative to help ship operators comply with international emission norms. Backed by significant funding allocations under the Maritime India Vision 2030 and Amrit Kaal Vision 2047, India has an opportunity to develop green bunkering and alternative fuel logistics across its primary ports.

Ultimately, the U.S.-India Biofuels Summit 2026 underscored that India has moved past the stage of proving whether ethanol works. With world-class distillation capacity in place and proven technology across aviation, cooking, and marine transport, the focus now pivots to decisive policy execution. By formalising regulatory frameworks and enabling cross-sectoral adoption, India is well-positioned to accelerate its transition into a global clean energy powerhouse.