The landmark India-UK Comprehensive Economic and Trade Agreement (CETA) will help Indian farmers, fishermen, artisans and small businesses prosper globally and accelerate job creation. It will enable the common man to access high-quality goods at competitive prices, contributing significantly to Prime Minister Narendra Modi’s Viksit Bharat 2047 mission. The transformational win-win agreement, which comes into force on July 15, will ensure comprehensive market access for Indian goods in the UK across sectors, particularly labour-intensive ones. It will immediately eliminate tariffs on about 99 per cent of tariff lines, covering almost 100 per cent of trade value, creating enormous opportunities for Indian exports.
A people-centric agreement, CETA was signed last year in the presence of PM Modi and British Prime Minister Keir Starmer. It delivers benefits across society. Farmers gain access to premium export markets without compromising their domestic interests. Fisherfolk benefit from enhanced seafood exports to the vast UK market. Workers gain new employment opportunities in labour-intensive sectors. Women entrepreneurs, youth, start-ups and MSMEs receive improved access to global value chains. Professionals benefit from enhanced mobility and recognition opportunities.
CETA unlocks the premium UK market for Indian farmers, matching or exceeding the benefits enjoyed by other European nations. Turmeric, pepper, cardamom and processed goods such as mango pulp, pickles and pulses will receive duty-free access. Higher agricultural exports will boost farm incomes and create greater incentives for quality, packaging and certification. It will also generate numerous jobs across the agricultural value chain. At the same time, CETA excludes India’s most sensitive agricultural sectors to protect domestic farmers, particularly those involved in dairy products, cereals, millets, apples, oats and cooking oils. These exclusions reflect the government’s strategy of prioritising food security, domestic price stability and vulnerable farming communities.
Immediate duty-free access to the vast UK market will rev up Indian manufacturing, allowing traditional artisans, large-scale factories, and regional industrial hubs to compete effectively. Small businesses will prosper as Indian products gain a clear competitive edge over rivals. Companies manufacturing soccer balls, cricket gear, rugby balls and toys, among other products, are poised to significantly expand their business in the UK. The removal of duties addresses longstanding tariff barriers, particularly in labour-intensive sectors, and is expected to generate immediate gains in export competitiveness and scale. From the looms of Tiruppur to the labs of Bengaluru, from diamond artisans in Surat to coders in Hyderabad, this agreement touches the real economy.
The UK has provided one of its most comprehensive service commitments ever, covering all major service 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. India has secured favourable mobility provisions for skilled professionals, including contractual service providers, business travellers, investors, yoga instructors, musicians and chefs. The agreement also provides predictable mobility pathways for business visitors, intra-corporate transferees, contractual service suppliers, independent professionals and investors. Further, 1,800 Indian chefs, yoga instructors and classical musicians will be able to access dedicated mobility opportunities annually under the agreement.
Under PM Modi’s leadership, FTAs go far beyond goods and services and set new benchmarks. With the EFTA countries — Switzerland, Norway, Iceland and Liechtenstein — India secured a commitment of $100 billion in investment, expected to create 1 million direct jobs. In the FTA with New Zealand, the country secured an investment commitment of $20 billion over 15 years, while the Australian FTA resolved the double-taxation issue that had troubled Indian IT companies.
A significant aspect of the agreement with the UK 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.
In 2014, the economy was struggling, with potential investors losing confidence. India was regarded as one of the “Fragile Five” economies after a decade marked by policy drift and corruption scandals involving astronomical sums. The Modi government adopted a determined approach to rebuild global confidence in the Indian economy and make it attractive for investors. Signing FTAs with developed countries was the next step. FTAs also enhance investor confidence by reducing uncertainty around trade policies. The government pursued FTAs with developed economies that offer large markets while not directly competing with India’s core trade interests. This creates a win-win situation, unlike the previous government’s approach of endangering Indian businesses by recklessly opening India’s doors to competitors.
Under PM Modi’s leadership, India is now widely respected as a resilient economy and a trusted partner in a volatile world. It has established itself as a reliable partner with an attractive market and remains the world’s fastest-growing major economy. Game-changing reforms, improvements in ease of doing business, the decriminalisation of minor offences, and the PM’s global stature have helped position India as a compelling investment destination. Today, the world wants to participate in India’s growth story — and sign FTAs.
These trade agreements have also ensured the gradual opening up of the domestic market. This makes the Indian market more competitive and encourages local manufacturers to produce high-quality goods at competitive prices, which is a key element of the PM’s Viksit Bharat mission. CETA is a benchmark for equitable and ambitious trade agreements between major economies. It opens attractive global opportunities for the underprivileged without compromising India’s core interests. It is a shining example of how New India does business.
The writer is Union Minister of Commerce and Industry, Government of India
A people-centric agreement, CETA was signed last year in the presence of PM Modi and British Prime Minister Keir Starmer. (@narendramodi/X) 
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