New Delhi, India — The India–UK Comprehensive Economic and Trade Agreement entered into force on July 15, 2026, creating a new framework for trade in information technology, digitally delivered services, telecommunications and other professional services between the two countries.
The agreement was concluded on May 6, 2025, and formally signed in London on July 24, 2025. India and the UK announced on June 17, 2026, that it would become operational from July 15 following the completion of their domestic ratification and implementation procedures.
For India’s technology industry, the agreement provides enhanced market access and greater regulatory certainty across IT and IT-enabled services, telecommunications, financial services, engineering, consultancy and other professional services. The UK’s services commitments cover all major services sectors and 137 subsectors of export interest to India.
The development is particularly relevant for Indian IT services companies, SaaS providers, cloud and data businesses, technology consultancies and startups serving customers in the UK. A more predictable services framework could support cross-border software delivery, enterprise-technology projects, digital-transformation engagements and expansion into the UK market.
The CETA’s digital-trade chapter recognises electronic contracts and prevents them from being denied legal validity solely because they were concluded electronically. It also supports electronic signatures, authentication, digital trust services, electronic invoicing and paperless trade, potentially reducing documentation and transaction friction for companies conducting business digitally.
The agreement also provides safeguards against governments requiring the transfer of or access to proprietary source code as a general condition for doing business. However, exceptions remain for regulatory investigations, inspections, enforcement proceedings and judicial requirements.
Cybersecurity and emerging technologies form another important component of the technology framework. India and the UK have committed to cooperation on incident-response capabilities, cyber-risk management, information sharing and technical standards. The agreement also supports collaboration on artificial intelligence, machine learning, distributed-ledger technologies, quantum technologies, digital twins and the Internet of Things.
The CETA does not immediately guarantee unrestricted cross-border data transfers or prohibit all data-localisation measures. Instead, it creates a mechanism for the two countries to negotiate stronger commitments if India adopts similar provisions with other trade partners. Existing data-protection laws will continue to apply.
The agreement also provides clearer mobility pathways for business visitors, intra-corporate transferees, contractual service suppliers and independent professionals. Alongside the CETA, the Double Contribution Convention allows eligible professionals temporarily deployed between India and the UK to avoid making social-security contributions in both countries for up to five years, potentially reducing deployment costs for IT and consulting companies.
An Innovation Working Group established under the agreement will support collaboration in research and development, technology commercialisation, future regulatory approaches and supply-chain resilience.
