India and the UK Strengthen Economic Ties with Comprehensive Economic and Trade Agreement (CETA)

On 24 July 2025, India’s Ministry of Commerce and Industry announced the signing of the India–UK Comprehensive Economic and Trade Agreement (CETA), a landmark deal set to deepen bilateral trade and investment relations. This agreement aims to facilitate smoother market access by reducing tariffs on goods, simplifying customs procedures, and enhancing cooperation across various sectors including services, investment, and sustainability.

Unlike a traditional Free Trade Agreement (FTA) that often focuses primarily on reducing tariffs on goods, CETA encompasses a broader scope of commitments. It includes detailed provisions on trade in services, investment protections, intellectual property rights, digital trade facilitation, and labor mobility—allowing professionals from both countries easier temporary access to each other’s markets.

For example, the India–UK CETA provides near duty-free access on approximately 99% of Indian tariff lines and 90% of UK tariff lines. It also emphasizes regulatory cooperation and trade facilitation measures designed to reduce non-tariff barriers, supporting small and medium enterprises and encouraging sustainable trade practices.

Beyond traditional trade concerns, the agreement addresses newer priorities such as state-owned enterprises, environmental standards, and gender equality, reflecting the modern and comprehensive nature of the pact.

Both governments view CETA as a strategic step to bolster economic growth, attract foreign direct investment, and foster innovation and technological exchange amidst a shifting global trade environment. India sees the deal as aligning with its export expansion and investment attraction goals, while the UK regards it as a critical part of strengthening post-Brexit trade relations.

The agreement will enter into force following completion of parliamentary and regulatory approvals in both countries. Stakeholders anticipate that CETA will open new avenues for businesses and service providers, deepening commercial cooperation and setting a framework for long-term partnership between India and the UK.

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