The CETA is projected to double the bilateral trade to $120 billion (presently ~USD 60 billion) by 2030.
Major Highlights of Comprehensive Economic and Trade Agreement (CETA)
- Tariff Elimination: It eliminates tariffs on 99% of Indian tariff lines and reduces tariffs on 90% of UK tariff lines.
- Sectoral gains for India: Labour-intensive sectors (textiles, leather, toys, and gems & jewelry) and engineering goods, chemicals, marine products, sports goods, auto parts and engineering goods.
- Farming Sector: Traditional farming knowledge receives patent protection.
- MSMEs: Indian MSMEs can now participate in UK government procurement.
- Sectoral gains for UK: Greater access to Indian markets for whisky, salmon, chocolate and advanced manufacturing sectors.
- Non-Tariff Barrier Reduction and customs simplification.
- Sectoral gains for India: Labour-intensive sectors (textiles, leather, toys, and gems & jewelry) and engineering goods, chemicals, marine products, sports goods, auto parts and engineering goods.
- Eases Professional Mobility: E.g: Eases visa norms for Indian professionals in IT, finance, engineering, architecture, education, and yoga.
- Double Contribution Convention (DCC): It exempts Indian workers and their employers from social security contributions in the UK for up to three years.
- Boost to Indian Services and IT Sector: Facilitates growth in digitally delivered services (like architecture and engineering), enhancing India's global competitiveness.
- Others: Facilitates technology transfer and increased UK investment in Indian industries, promotes supply chain diversification and reduces over-dependence on single trade corridors.
As two leading democracies and global innovation hubs, India – UK CETA sets a new benchmark for fair, ambitious, and modern trade agreements worldwide.
