New Delhi: The India-UK Comprehensive Economic and Trade Agreement (CETA) officially came into force on Wednesday, marking a major step in strengthening economic ties between the two countries. The agreement is expected to boost Indian exports, attract greater investment and gradually make several premium British products more affordable for Indian consumers.
The biggest advantage of the trade pact is for Indian exporters. Nearly 99 per cent of Indian goods exported to the United Kingdom will now enjoy zero-duty access, allowing products to enter the British market without import tariffs. This is expected to make Indian exports more competitive and expand opportunities across several labour-intensive industries.
Key sectors expected to benefit include textiles and garments, leather and footwear, gems and jewellery, marine products, engineering goods, auto components, processed food, chemicals, pharmaceuticals and agricultural products. The agreement is also expected to encourage higher production, create employment and strengthen India’s manufacturing sector.
The services industry is another major beneficiary. Indian IT firms, consulting companies, engineers, architects, healthcare professionals, accountants and education service providers will receive improved market access across 137 service sectors. The agreement also includes a Double Contribution Convention, allowing Indian professionals working temporarily in the UK for up to five years to avoid paying social security contributions in both countries.
For Indian consumers, the impact will be gradual rather than immediate. Tariffs on products such as Scotch whisky, gin, premium British cars, luxury motorcycles, cosmetics, chocolates, biscuits, medical devices and selected food items will be reduced in phases over the coming years. Imported British vehicles, which currently attract duties of up to 110 per cent, will see lower tariffs under a quota-based system while safeguards remain in place to protect domestic manufacturers.
Trade experts believe the agreement’s long-term significance lies in expanding exports, generating jobs and attracting British investment into sectors including manufacturing, financial services, renewable energy, education and technology. Industry estimates suggest bilateral trade between India and the UK could nearly double to around 120 billion US dollars by 2030, making the agreement a significant milestone in India’s global trade strategy.
