New Delhi: The landmark India-UK Comprehensive Economic and Trade Agreement (CETA), which has come into effect from Wednesday, grants zero-duty access on nearly 99 per cent of India’s exports, covering almost 100 per cent of the trade value, which will strengthen the country’s export competitiveness, according to a government factsheet.
India will benefit from one of the most ambitious services commitments ever offered by the UK under a Free Trade Agreement.
The agreement seeks to deepen trade and investment through improved market access, simplified trade procedures, enhanced services commitments, and greater professional mobility. The CETA further creates new opportunities across agriculture, fisheries, manufacturing, services, and other key sectors by reducing trade barriers and improving export competitiveness.
At the same time, it safeguards India’s sensitive sectors through calibrated market access and phased tariff liberalisation. The agreement promotes digital trade, innovation, sustainable development, and stronger people-to-people linkages. By strengthening bilateral cooperation across multiple areas, the agreement lays the foundation for a more inclusive, future-oriented economic partnership, the factsheet stated.
Indian farmers and fisherfolk are expected to benefit from improved access to the UK market through tariff elimination. This is likely to create new export opportunities and strengthen incomes.
Labour-intensive sectors such as textiles, leather, footwear, gems and jewellery, handicrafts, food processing, auto components, plastics, and organic chemicals are poised to witness higher exports. This is likely to boost employment generation.
The agreement places strong emphasis on inclusive and future-ready growth. It expands opportunities for women, youth, MSMEs, businesses, and professionals. Dedicated provisions promote greater participation of women and under-represented groups in trade, innovation, and entrepreneurship. It also reinforces commitments to internationally recognised labour rights, gender equality, and fair working conditions.
Improved access to the UK services market, mobility provisions, and recognition of professional qualifications create new opportunities. These opportunities benefit skilled Indian professionals and young talent.
India and the UK share a strong and expanding economic partnership. In 2025, India recorded a GDP of $3.96 trillion, while the UK economy stood at $ 3.84 trillion, reflecting the significance of both economies in global trade.
Merchandise trade between the two countries reached $25.12 billion in 2025- 26, with India’s exports to the UK valued at $13.44 billion and imports at $11.68 billion, resulting in a trade surplus of $1.76 billion.
Services trade has been equally robust, with total bilateral services trade touching $35.44 billion in 2024. India exported services worth $21.66 billion to the UK and imported $13.78 billion, generating a services trade surplus of $ 7.88 billion.
The CETA has been designed to deliver broad-based benefits across various sectors of the economy. It also ensures that the gains from trade are widely shared.
(IANS)
