The Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom will come into force from tomorrow.

 

The landmark deal grants Indian exports zero-duty access to 99 per cent of tariff lines in the UK market. It reflects the shared commitment of India and the United Kingdom to deepen their strategic partnership and deliver prosperity for their people. The groundwork for this historic agreement was laid in May 2021 through the Enhanced Trade Partnership and the adoption of the India-UK Roadmap 2030, which set the goal of doubling trade to 100 billion US dollar by 2030.

 

The implementation of the India-UK trade agreement marks a major step in India’s journey towards becoming a globally integrated, resilient and competitive economy.  It has been designed as a people-centric agreement that delivers benefits across society. With the agreement coming into force, Indian exporters will benefit from the complete elimination of UK tariffs on several key sectors.

 

Tariffs of up to 70 per cent on processed food products, over 21 per cent on marine products, around 18 per cent on engineering goods and auto components, up to 16 per cent on leather and footwear products, around 12 per cent on textiles and clothing will be reduced to zero. This will significantly enhance the competitiveness of Indian exports in the UK market, generate new opportunities for farmers, fishermen, MSMEs and manufacturers, and strengthen India’s integration into global value chains.

 

Indian service providers in IT and IT-enabled services, financial services, healthcare, education, engineering, telecommunications and consultancy services will benefit from enhanced market access and greater regulatory certainty.