Context

• India and the United Kingdom signed a landmark Comprehensive Economic Trade Agreement (CETA) during Prime Minister Narendra Modi’s visit to the U.K.
• India and the United Kingdom have taken a major step in building a stronger economic partnership with the signing of the Comprehensive Economic and Trade Agreement (CETA) today under the visionary leadership of  Prime Minister Shri Narendra Modi. The agreement was signed by Commerce and Industry Minister, Mr. Piyush Goyal and Secretary of State for Business and Trade, Mr. Jonathan Reynolds in the presence of the two Prime Ministers.

Key Highlights

• CETA secures unprecedented duty-free access for 99% of India’s exports to the UK, covering nearly the entire trade basket.
• This is expected to open new opportunities for labour-intensive industries such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery, alongside fast-growing sectors like engineering goods, auto components, and organic chemicals.

Service Sector

• The agreement provides greater market access in IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade. 
• Indian professionals, including those deployed by companies to work in the UK across all services sectors, professionals deployed on contracts such as architects, engineers, chefs, yoga instructors, and musicians, will benefit from simplified visa procedures and liberalised entry categories, making it easier for talent to work in the UK.

Agriculture Sector: Boosting Rural Economy

• Duty free export for 95% of Agri Products.
• No tariff concession on UK dairy product apples, Oats and edible oils
• Major beneficiary states, Maharashtra, Punjab, Haryana, Gujrat, Kerala and North Eastern States.

New Avenues for Plantation Sector

• Duty free access to India’s instant coffee, tea, spices and rubber.

• Export of Darjeeling tea from West Bengal and Araku Coffee from Andhra Pradesh to Soar.
• Duty- Free access to processed foods like Mango-pulp, pickles, pulses and ready to eat foods.
• More Income for farmers and increased Rural Employment.

Unleashing Power of Blue Economy

• Zero Duty access for 90% of Marine Exports.
• Coastal states like West Bengal, Odisha, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Gujrat to benefit from export led job creation.
• Indian Fisherman to have greater expansion into the UK's $5.4 billion marine Market.

Textiles & Apparel: Enhanced Competitiveness.

• Coverage: 1,143 product categories, all duty-free.
• Market Impact: India may gain 5% more UK market share.
• Key Products: Ready-made garments, carpets, handicrafts, home textiles.
• Advantage: Levels playing field with Bangladesh and Cambodia.

Engineering Goods: Export Surge Expected

• Current Status: $4.28B exports to UK; UK imports $193.5B globally.
• Tariff Cuts: Up to 18% duties scrapped.
• Projection: Engineering exports may double to $7.5B by 2030.

Leather and Footwear

• From 16% to Zero: Duty-free access for leather and footwear.
• It will increase the global competitiveness of our MSME in hubs like Agra, Kanpur and Chennai.
• Greater brand recognition of products like Kolhapuri Chappals.
• It will boost income for local artisans, jobs and Cultural Identity.

Gems and Jewellery

• Duty Free access into UK’S gems and jewellery market.
• E-Commerce, digital tools, sustainable production technologies, efficiency to enhance market reach.

Chemicals & Plastics

• Chemical Sector: Exports to rise 30–40% to $650–750M in FY26.
• Plastic Sector: Focus on films, sheets, kitchenware; 15% export growth targeted.
• Advantage: More competitive pricing versus global suppliers.

Impact of India-UK Trade Deal

• Gains for Indian Sectors – India’s key export sectors — including agriculture, processed food, textiles, footwear, seafood, gems and jewellery, and engineering goods — will enjoy expanded market access in the U.K. thanks to reduced tariffs.
• Benefits for British Exports – British exporters will also benefit significantly. The deal is set to ease the sale of whisky, cars, and other British goods in India, helping diversify and broaden the trade portfolio.
• Boost to Bilateral Trade – UK exports to India are projected to grow by nearly 60%, contributing an additional £15.7 billion by 2040. Overall bilateral trade is expected to surge by 39%, adding £25.5 billion annually compared to trade levels in the absence of the agreement.
• Services and Mobility Provisions – The FTA includes chapters on services, innovation, and intellectual property, offering enhanced mobility for Indian professionals.
• Additionally, a Double Contribution Convention Agreement will prevent Indian workers in the UK from paying into both Indian and British social security systems..

Conclusion

• This CETA marks a milestone in the trade relations between two major economies, setting an ambitious and balanced framework. It unlocks tariff-free access on 99% of Indian exports to the UK, covering nearly 100% of trade value- including labour-intensive sectors advancing the ‘Make in India’ initiative and setting the stage for bilateral trade to double by 2030.
• This FTA will serve as a catalyst for inclusive growth, benefiting farmers, artisans, workers, MSMEs, startups, and innovators while safeguarding India’s core interests and accelerating our journey towards becoming a global economic powerhouse.”