Unlocking Opportunities: How the India-UK CETA Marks a New Era in Economic Diplomacy for Bharat

The India-UK Comprehensive Economic and Trade Agreement (CETA), signed on July 24, 2025, marks a significant milestone. This is India’s first free trade deal with a developed European nation. Thanks to this agreement, 99% of Indian exports can now enter the UK without any duties, leveling the playing field for Indian businesses.

Officials expect that trade between India and the UK could double from the current $56 billion by 2030. This boost will particularly benefit small entrepreneurs in sectors like sports goods, artisan crafts, and textiles. The Commerce Minister highlighted that India is on track to become a leading supplier of leather, textiles, and footwear to the UK, empowering local artisans and small businesses, especially women.

Support for Agriculture and Fisheries

The tariff-free access for 95% of agricultural products is a game changer. It’s projected that this will increase agricultural exports by 20% over the next three years, enhancing rural economies. Critical agricultural items like dairy and apples will not be subject to tariff reductions, which will help stabilize prices for farmers. Additionally, Indian fishermen will benefit from reduced tariffs on marine products, which will drop from 20% to zero.

Opportunities in Services

CETA also opens doors for IT and services. Mobility provisions for professionals in sectors such as finance and education will facilitate easier access to opportunities in the UK. While the agreement allows Indian investment in various fields, there are still limitations on visa access for professionals, reminiscent of past complications faced with ASEAN agreements.

Government Procurement Changes

This agreement is groundbreaking in government procurement, allowing British firms to bid for about 40,000 high-value contracts in India. This marks a shift in India’s previously cautious stance on such large-scale openings. The inclusion means that UK companies with a certain level of local content can be classified as local suppliers, a significant change compared to past policies. While this presents opportunities for Indian businesses in British procurement, it also raises questions about how well they will navigate potential barriers in the UK.

A New Trade Era for the UK

CETA showcases India’s expanding confidence in forging trade relationships with developed nations post-Brexit. As the UK seeks to regain its foothold in European markets, this agreement signals a new beginning for trade.

Interestingly, user reactions on social media reflect optimism and curiosity about how these changes will affect everyday consumers and businesses. Many are eager to see how this trade will influence prices, job opportunities, and product availability in both countries.

As CETA evolves, its impacts on the economic landscape will unfold gradually. For now, both governments are optimistic, recognizing that this collaboration could pave the way for more robust trade relations between developing and developed nations.

For more insights on trade agreements, you can refer to the World Trade Organization.

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