Context:
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
- 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
| Sector | Benefits to India |
|---|---|
| Trade | Exponential export growth, zero-duty access, MSME expansion |
| Employment | Job creation in textiles, food processing, engineering, IT |
| Mobility | Streamlined visa norms and recognition of Indian professionals abroad |
| Innovation | AI, 6G, biotech, green hydrogen, semiconductors, quantum research |
| Climate Action | Finance, clean energy access, carbon trading opportunities |
| Defence | Co-development in advanced technologies, enhanced maritime presence |
| Global Reform | Common stance on reforming UN, WTO, IMF and other multilateral bodies |
