The India–UK Free Trade Agreement (FTA), also known as the Comprehensive Economic and Trade Agreement (CETA), is a bilateral initiative aimed at reducing or removing tariffs and non-tariff barriers on goods and services. The pact seeks to enhance trade, attract investment, and promote India’s exports in sectors such as textiles, marine products, pharmaceuticals, engineering goods, and IT services.
The FTA is expected to significantly benefit Indian exporters, particularly in labour-intensive sectors:
• Apparel and textile exports may grow by approximately ₹7,000 crore.
• Marine product exports could increase by up to 70% with zero-duty market access.
• Processed foods like rice, mangoes, dairy, and oats will gain easier entry into UK markets.
• Electronics, IT services, and medical equipment will enjoy tariff-free access, improving global competitiveness.
The agreement is projected to generate employment across several industries:
• Textiles and apparel – due to growing demand from UK buyers.
• Pharmaceuticals and medtech – benefiting from streamlined approvals.
• IT and electronics – aided by smoother digital and data flow frameworks.
• Agriculture and fisheries – helping small farmers and exporters expand access to UK markets.
The FTA provides a boost for Indian professionals in IT, healthcare, architecture, and management through:
• Lower visa costs and easier mobility for intra-corporate transfers.
• Recognition of select professional qualifications.
However, legal services remain excluded due to regulatory differences between the two nations.
UK exporters will gain duty-free access to India’s growing market in:
• High-end machinery and industrial equipment.
• Premium food and beverages like whisky and cheese.
• Financial, insurance, and educational services with liberalized investment norms.
In addition, six UK universities will be permitted to open campuses in India, strengthening transnational education ties.
The agreement offers tariff concessions for key agro-based exports, including:
• Dairy products such as ghee and paneer.
• Fruits like apples and mangoes.
• Edible oils and processed foods.
These measures will help farmers diversify income sources and tap into new export opportunities.
• The UK will eliminate tariffs on nearly 100% of Indian goods over time.
• India will lower tariffs on selected UK goods, keeping sensitive sectors protected.
• Indian apparel and marine products will enjoy zero-duty access under a phased schedule.
While the FTA offers major gains, some domestic concerns remain:
• Dairy cooperatives worry about competition from UK milk and cheese.
• Legal professionals remain excluded from reciprocal benefits.
• MSMEs in competitive sectors may need support programs during the transition period.
The agreement follows a progressive implementation roadmap:
• Signing: Expected in 2025.
• Tariff phase-outs: Between 3 and 10 years.
• Trade Monitoring Committee: Will oversee compliance, resolve disputes, and review progress.
The UK is one of India’s most important post-Brexit trading partners. This FTA helps:
• Diversify export markets beyond traditional destinations.
• Strengthen commercial and strategic ties with the UK.
• Integrate India deeper into global supply chains in sectors like textiles, pharma, and electronics.
• Position India as a trusted global trade partner.
Yes, the FTA includes provisions on sustainability and ethical trade:
• Commitment to ILO labour standards.
• Cooperation on climate change and green technology.
• Inclusion of clean energy and circular economy products in the trade framework.
Following the agreement, India’s exports to the UK are expected to rise from $11 billion to $20 billion within two years. The UK’s exports to India could reach $15 billion in the same period. The long-term goal is to double bilateral trade to represent 12% of the UK’s non-EU trade by 2027, aligning with India’s vision of achieving a $1 trillion export economy.
Kutos : AI Assistant!
