India–UK Comprehensive Economic and Trade Agreement (CETA)

India and the United Kingdom signed a historic Comprehensive Economic and Trade Agreement (CETA) in July 2025, along with endorsing a strategic long-term roadmap titled India–UK Vision 2035. This marks a landmark shift in bilateral ties post-Brexit, promoting economic, technological, defence, climate, and educational cooperation.

What is India–UK CETA?

The Comprehensive Economic and Trade Agreement (CETA) is a modern Free Trade Agreement (FTA) that:

• Grants zero-duty access on 99% tariff lines for Indian exports.
• Covers goods, services, investments, mobility, and social security through the Double Contribution Convention (DCC).
• Aims to empower labour-intensive sectors, MSMEs, professionals, women entrepreneurs, and youth.

Key Provisions of CETA

1. Goods and Market Access

• Zero-duty access on 99% of tariff lines, covering 100% of India’s export value to the U.K.
• Major beneficiaries: textiles, gems & jewellery, leather, marine products, processed food (tariffs cut from 70% to 0%).
• Sensitive sectors like dairy remain protected via exclusion lists.

2. Services and Skilled Mobility

• Broader access for IT, finance, legal, education, consulting, and architecture sectors.
• Liberalised visa norms for:
  • Contractual Service Suppliers
  • Intra-Corporate Transferees
  • Independent Professionals
• Mutual recognition of qualifications in healthcare, engineering, and other regulated sectors.

3. Social Security – DCC

• Double Contribution Convention (DCC): Exempts Indian professionals from UK social security payments for up to 3 years.
• Improves competitiveness and take-home income for Indian firms and workers abroad.

4. Inclusive and MSME-Oriented Growth

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• Special focus on MSMEs, women-led enterprises, artisans, farmers, and youth entrepreneurs.
• Access to the UK’s $63.4 billion agricultural market for items like tea, coffee, spices, fruits, and meat (excluding sensitive dairy).
• Establishment of SME contact points, paperless trade processes, and digital customs clearance.

India–UK Vision 2035

The India–UK Vision 2035 outlines a comprehensive blueprint under five key pillars:

1. Growth and Jobs

• Target: Double bilateral trade to $112 billion by 2030 (from $56 billion).
• Focus on legal, insurance, financial, and asset management reforms to attract mutual investments.
• Infrastructure financing via UK-India bridge mechanisms and BII.

2. Technology and Innovation

• Joint AI centre, 6G trials, biotech cooperation, and India–UK Critical Minerals Guild.
• Partnerships on semiconductors, quantum tech, and cybersecurity.
• Strengthening of startup ecosystems through catapults, biofoundries, and incubators.

3. Defence and Strategic Security

• 10-year Defence Industrial Roadmap covering:
  • Electric propulsion
  • Underwater systems
  • Directed energy weapons
• Elevated 2+2 dialogue, military drills, and joint counter-terror frameworks.
• Greater UK logistical dependence on India in the Indian Ocean Region (IOR).

4. Climate and Clean Energy

• Collaboration on green hydrogen, offshore wind, SMRs (small modular reactors), and climate finance.
• Alignment through ISA, OSOWOG, ZEVTC, and India–UK Forest Partnership (focus on agroforestry and blue carbon).
• Net Zero Innovation Partnership to accelerate clean tech R&D and deployment.

5. Education and People-to-People Ties

• Launch of UK university campuses in India, dual degrees, and credential recognition.
• Implementation of the Young Professionals Scheme.
• Green Skills Partnership to equip youth for the global climate economy.

Strategic Benefits to India

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