New Delhi: The landmark India–UK Comprehensive Economic and Trade Agreement (CETA) came into effect on Wednesday, granting zero-duty access to nearly 99 per cent of India's exports, covering almost 100 per cent of the trade value and strengthening the country's export competitiveness, according to a government factsheet.
The agreement also provides India with one of the most ambitious services commitments ever offered by the UK under a Free Trade Agreement (FTA).
CETA aims to deepen bilateral trade and investment through improved market access, simplified trade procedures, enhanced services commitments and greater professional mobility.
The agreement is expected to create new opportunities across agriculture, fisheries, manufacturing, services and other key sectors by reducing trade barriers and improving export competitiveness.
At the same time, it safeguards India's sensitive sectors through calibrated market access and phased tariff liberalisation.
The agreement also promotes digital trade, innovation, sustainable development and stronger people-to-people ties, laying the foundation for a more inclusive and future-oriented economic partnership, the factsheet said.
Indian farmers and fisherfolk are expected to benefit from improved access to the UK market through tariff elimination, creating new export opportunities and strengthening incomes.
Labour-intensive sectors, including textiles, leather, footwear, gems and jewellery, handicrafts, food processing, auto components, plastics and organic chemicals, are expected to witness higher exports, which is likely to boost employment generation.
CETA places strong emphasis on inclusive and future-ready growth by expanding opportunities for women, youth, MSMEs, businesses and professionals.
Dedicated provisions encourage greater participation of women and underrepresented groups in trade, innovation and entrepreneurship. The agreement also reinforces commitments to internationally recognised labour rights, gender equality and fair working conditions.
Improved access to the UK services market, mobility provisions and recognition of professional qualifications are expected to create new opportunities for skilled Indian professionals and young talent.
India and the UK continue to share a strong and expanding economic partnership.
In 2025, India's GDP stood at $3.96 trillion, while the UK economy was valued at $3.84 trillion, underlining the significance of both economies in global trade.
Merchandise trade between the two countries reached $25.12 billion in 2025-26, with India's exports to the UK valued at $13.44 billion and imports at $11.68 billion, resulting in a trade surplus of $1.76 billion.
Services trade also remained strong, with total bilateral services trade reaching $35.44 billion in 2024. India exported services worth $21.66 billion to the UK and imported $13.78 billion, generating a services trade surplus of $7.88 billion.
According to the government, the India–UK CETA has been designed to deliver broad-based benefits across multiple sectors of the economy while ensuring that the gains from trade are widely shared.
With IANS inputs