India-UK Comprehensive Economic and Trade Agreement (CETA): A Milestone in New India's Growth Story

The India-UK Comprehensive Economic and Trade Agreement (CETA) marks a major milestone in India’s global trade strategy. Spearheaded by Piyush Goyal, it boosts market access, eliminates tariffs on 99% of goods, and is set to double bilateral trade to $100 billion by 2030. CETA empowers farmers, artisans, fishermen, and small businesses, creating numerous jobs and improving exports in textiles, agriculture, and services. It reflects India’s innovative FTA approach, aligning with PM Modi’s vision of Viksit Bharat 2047.

The recently announced India-UK Comprehensive Economic and Trade Agreement (CETA) marks a turning point in India’s economic diplomacy. Championed by Piyush Goyal, India’s Minister of Industry and Supply, this landmark FTA is poised to make Indian farmers, fishermen, artisans, and small businesses globally competitive. It will also create thousands of jobs and provide Indian consumers with high-quality goods at competitive prices—a forward step aligned with Prime Minister Narendra Modi’s vision of a developed India, Viksit Bharat 2047.

This agreement builds on similar trade pacts with Australia, the European Free Trade Association (EFTA) countries, and the UAE, forming part of the Modi government’s strategy to maximize economic growth and job creation.

A Strategic Shift in Economic Diplomacy

In 2014, the Modi government adopted a transformative economic strategy, focused on rebuilding global confidence in the Indian economy. Signing Free Trade Agreements (FTAs) with developed nations plays a crucial role in this vision.

 Unlike prior approaches that often exposed Indian businesses to intense competition, the current government’s FTAs aim for a win-win scenario. By fostering partnerships with countries that don’t have competing trade interests, these agreements ensure India’s economic interests are safeguarded while unlocking growth opportunities.

 India’s strong economic reforms, ease of doing business, and its emergence as a compelling global market have attracted developed countries back to the negotiating table. This is a stark contrast to the UPA-era, when India was regarded as one of the ‘Fragile Five’ economies, leading to abandoned trade talks.

Market Access and Competitive Edge

 CETA is expected to double India-UK bilateral trade from 56billiontoover56 billion to over 56billiontoover100 billion by 2030. The agreement eliminates tariffs on 99% of tariff lines, covering almost 100% of trade value. This gives Indian businesses a significant competitive edge in the UK market.

 Sectors like sports equipment (soccer balls, cricket gear, rugby balls), toys, and textiles are poised for substantial growth. Indian products will outshine global rivals, creating immense opportunities for small and medium enterprises.

Job Creation Across Sectors

 CETA is not just about trade; it is a catalyst for employment and investment. The agreement positions India to become one of the top three suppliers to the UK in textiles, leather, and footwear. Small businesses, women artisans, and craftsmen will benefit from these opportunities, entering global value chains.

Other sectors such as gems and jewelry, engineering goods, chemicals, and electronics are expected to see a sharp rise in exports. The resulting wave of economic activity will create numerous jobs.

Empowering Farmers and Rural India

 CETA brings immense benefits to Indian agriculture, with over 95% of agricultural and processed food tariff lines attracting zero duty. This is expected to boost agri-exports by over 20% in just three years, paving the way for India’s $100 billion agri-export goal by 2030.

 Indian farmers will gain access to the premium UK market for products like turmeric, pepper, cardamom, mango pulp, pickles, and pulses. Duty-free exports will improve farm incomes and drive quality improvements, packaging innovations, and certifications.

 Importantly, the government has excluded sensitive agricultural products such as dairy, apples, oats, and cooking oils from tariff concessions, ensuring domestic farmers are protected.

Fishermen to Flourish

 The agreement also brings good news for Indian fishermen, particularly in coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. UK import duties on shrimp and other marine products will drop to zero, opening a $5.4 billion market for Indian exports. This move is expected to dramatically expand the marine export sector and create jobs in fishing communities.

Boost for Services and Skilled Professionals

 CETA is not limited to goods; it also catalyzes growth in India’s services sector. It includes favorable mobility provisions for skilled professionals, such as IT experts, business travelers, yoga instructors, musicians, and chefs. This will enhance opportunities for Indian talent in the UK.

One notable feature is the Double Contribution Convention, which exempts Indian workers in the UK from social security contributions for three years. This provision significantly enhances the competitiveness of Indian service providers.

Innovative FTAs: A New Benchmark

 Modi-government FTAs go beyond traditional trade deals, setting new benchmarks for innovation and inclusivity. For instance, the India-EFTA agreement guarantees $100 billion in investments, while the Australia FTA resolved long-standing double-taxation issues, benefitting Indian IT firms.

 CETA reflects this innovative approach, ensuring equitable trade that benefits underprivileged communities while protecting India’s core interests. Extensive consultations with stakeholders ensure these agreements are well-supported by the industry.

Quality Goods for Indian Consumers

 Trade agreements increase competition in the domestic market, giving Indian consumers access to high-quality products at competitive prices. The government has introduced Quality Control Orders and other policies to ensure goods meet global standards.

 The India-UK CETA is a shining example of how India is redefining global trade under PM Modi’s leadership. By opening up opportunities for farmers, fishermen, artisans, and small businesses, while safeguarding domestic interests, CETA exemplifies the government’s commitment to inclusive growth.

 This agreement is not just a trade deal—it is a cornerstone of New India’s economic vision, propelling the nation toward its goal of becoming a developed economy by 2047.