Starting today, nearly all of India’s exports to the UK will enjoy duty-free access, creating huge opportunities for our small businesses, farmers, fishermen, innovators, women and labour-intensive industries as the transformational Comprehensive Economic and Trade Agreement (CETA) comes into effect.
This is India’s most comprehensive Free Trade Agreement (FTA), and it will bring prosperity by creating numerous jobs and business opportunities. It will also gradually expose Indian manufacturers to healthy competition that will benefit every citizen with competitively priced high-quality goods. This will significantly accelerate Prime Minister Narendra Modi’s Viksit Bharat 2047 mission.
Businesses are excited. They have elaborate plans to flag off cargoes to the UK. Gems and jewellery exporters expect shipments to the UK to grow 230% to $2.5 billion in three years, if not earlier, while exporters of engineering goods expect sales to the UK to almost double to $7.5 billion in next 4-5 years.
The win-win agreement, signed last year in the presence of PM Modi and British PM Keir Starmer immediately eliminates duties on about 99% of tariff lines, covering almost 100% of trade value, creating enormous opportunities for Indian exports, which are already growing handsomely despite global turbulence.
Young Minds, Global Finds – The people-centric FTA comes into force on July 15, which is also the World Youth Skills Day. On the same day in 2015, PM Modi launched the Skill India Mission, which is empowering our youth to compete, contribute and lead, not just in India, but globally.
For the benefit of Indian youth, the UK has provided one of its most comprehensive services commitments ever, covering all major services sectors and 137 sub-sectors of export interest to India. Enhanced market access and regulatory certainty will support Indian service providers in IT and IT-enabled services, financial services, professional services, healthcare, education, engineering, telecommunications and consultancy services.
Job Creation - The youth will get more job opportunities as labour-intensive sectors such as gems and jewellery, textiles, leather and footwear, organic chemicals, plastics, auto parts, artisanal products and food processing expand operations with greater market access.
Overall, by fostering access to global value chains and enhancing competitiveness, CETA will empower Indian youth with essential skills and opportunities needed to participate meaningfully in international markets and drive growth.
A significant aspect of CETA is the Double Contribution Convention. This landmark arrangement, entering into force alongside CETA, exempts Indian workers and employers from making dual social security contributions in the UK during temporary assignments.
More than 75,000 Indian professionals and over 900 companies are expected to benefit from continued social security coverage for employees on temporary overseas assignments.
Grow Local, Sell Global - Indian farmers will gain from easier access to the $37.5 billion UK market. This will boost exports of Indian dairy products, tea, coffee, spices, fruits, vegetables, fruit juices, meats and processed agriculture product. About 95% of UK’s farm imports will be open to India duty free. Exports to this vast market have the potential to grow 50% in three years. This will boost farm incomes and create a numerous jobs across the agricultural value chain.
Importantly, the agreement fully safeguards sensitive farm products such as dairy, vegetables, apples, edible oils, oats, millets, cooking oils and others by placing them in the sensitive list. No duty concessions have been granted to the UK on these items. These exclusions reflect the Modi government’s strategy of prioritising food security, domestic price stability and vulnerable farming communities.
SMEs - Local Hustle, Global Muscle – PM Modi has always given high priority to India’s Small and Medium Enterprises (SMEs). CETA has a dedicated chapter to help the vital SME sector that accounted for 45.8% in India’s total export in 2024-25. CETA will help SMEs with key provisions including faster customs processing, agreements to recognise and facilitate digital systems and paperless trade.
Apart from preferential market access, SMEs will benefit from enhanced cooperation on best practices related to trade, education and finance, digital skills, business infrastructure and other important areas.
Big Catch for Fishermen - CETA is poised to significantly benefit India’s fishery and aquaculture sector which supports the livelihoods of approximately 28 million individuals.
Enhanced market access and higher exports will benefit fishermen of the Andhra Pradesh, Gujarat, Karnataka, Odisha, and Maharashtra. It will not only strengthen India's fisheries exports but also contribute to the welfare and livelihoods of fishermen and promote coastal economic development.
A Win for Women – The landmark agreement, that goes far beyond traditional FTAs, recognises the contribution of women in driving sustained and inclusive economic growth. It aims to promote opportunities and benefits for women.
Both countries have committed to undertake various activities to enhance women’s access to markets and emerging sectors, promoting financial inclusion and literacy, promoting equal opportunities for women in the workplace, and develop their capacity and skills etc.
CETA is far more than a trade agreement. It is a statement of confidence in India's capabilities and aspirations. It reflects a new India that is not merely participating in global commerce but helping shape it. By empowering our farmers, fishermen, workers, women entrepreneurs, MSMEs, professionals and youth, it will create opportunities that touch every Indian in every corner of the country.
(The author is Union Minister of Commerce and Industry)