India–UK Comprehensive Economic and Trade Agreement (CETA)

Current Context: India signed its first full Free Trade Agreement (FTA) with a Western developed nation — the UK.

 ABOUT CETA AGREEMENT

• Signed On: 24 July 2025; concluded after 3+ years of negotiations.
• Coverage: Trade in goods, services, investment, IP, digital trade, labour mobility, and more.

KEY HIGHLIGHTS & BENEFITS

• Market Access:
  • Zero tariffs on 99% of Indian exports to the UK.
  • UK duties on cars & whisky reduced from 15% to ~3%.
  • Trade expected to reach $100–120 billion by 2030.
• Sectoral Benefits:
  • Indian exports boosted: textiles, footwear, leather, gems, toys, engineering goods.
  • UK gains: automobiles, whisky, medical devices, chocolates, salmon.
• Services & Mobility:
  • Easier movement for Indian IT experts, architects, chefs, musicians, and educators.
  • Double Contribution Convention (DCC): Avoids dual social security payments for up to 3 years.