India–UK Sign Comprehensive Economic and Trade Agreement (CETA)

Context

India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA), marking a new phase of bilateral economic partnership.

Nature of the Agreement:

CETA is a Free Trade Agreement (FTA) signed between India and the UK, covering goods, services, investments, and mobility.
This marks India’s first major FTA with a G7 country since Brexit, and signals India’s growing engagement with developed economies.

Key Provisions in Goods Trade:

Zero-duty access on 99% of tariff lines, covering nearly 100% of the trade value of Indian exports to the UK.
Major beneficiary sectors: textiles, leather, footwear, gems and jewellery, marine products, toys, and auto components.

Global Talent Mobility and Social Security:

Double Contribution Convention (DCC): Indian workers in the UK (for up to 3 years) and their employers are exempted from social security contributions, enhancing Indian firms' cost competitiveness
Facilitates intra-corporate transferees, business visitors, and skilled labour movement.

Trade Objectives and Vision:

The agreement supports India’s aim to double bilateral trade with the UK (USD 56 billion currently) by 2030.
Strengthens the Make in India, Skill India, and Startup India missions through export-linked job creation and MSME empowerment.
Reinforces India’s position in global value chains by ensuring inclusive trade with a focus on women, youth entrepreneurs, and artisans.

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Governance

Left-Wing Extremism

Internal Security

National Cooperation Policy 2025

Governance

India–UK Vision 2035

International Relations Bilateral relations

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