India–UK CETA to unlock trade growth, empower Indian exporters

The agreement ensures duty elimination on nearly 99% of tariff lines, covering almost the entire trade value between the two countries.

India and the United Kingdom have signed a historic Comprehensive Economic and Trade Agreement (CETA) to significantly strengthen bilateral trade and investment. Signed in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, the pact aims to eliminate tariffs, reduce trade barriers, and empower Indian exporters across key sectors ranging from textiles and processed food to chemicals, marine, and pharmaceuticals.

The agreement ensures duty elimination on nearly 99 per cent of tariff lines, covering almost the entire trade value between the two countries. This offers immense scope to boost exports across high-potential sectors, including agriculture, electronics, engineering goods, and textiles.

Duties have been reduced to zero in labour-intensive sectors: up to 20 per cent on marine products, 12 per cent on textiles and clothing, 8 per cent on chemicals, and 10 per cent on base metals. Processed food exports get a strong push, with 99.7 per cent of tariffs—previously as high as 70 per cent—slashed to zero.

Agriculture and allied sectors are set to benefit from enhanced access for items such as fruits, vegetables, cereals, basmati rice, beverages, oilseeds, dairy, and animal products. The deal supports India’s goal of achieving $100 billion in agri exports by 2030.

To ensure a level playing field, the FTA incorporates safeguards against unjustified technical and sanitary trade barriers. It also reduces compliance burdens, improves predictability, and enhances time-to-market for Indian products.

The marine sector, particularly Indian fishermen, will gain access to the UK’s $5.4 billion seafood market. Meanwhile, the MSME sector stands to gain from duty-free access in leather, textiles, gems and jewellery, furniture, and sports goods—segments where UK imports exceed $23 billion.

MSMEs from regions like Tirupur, Panipat, Bhadohi, and Agra will gain a competitive edge against exporters from Bangladesh, Pakistan, and Cambodia. The FTA also fosters cooperation in trade finance, training, partner identification, and transparent payment norms.

In chemicals and pharmaceuticals, Indian manufacturers are poised to expand their reach in the UK market, driving growth in generics, specialty chemicals, and innovative healthcare solutions, while also promoting joint R&D and strengthening supply chains.

News source: DD News