India-UK trade deal takes effect, giving nearly all Indian exports duty-free access
Deal removes tariffs on 99% of tariff lines, covering almost 100% of India-UK exports
Dubai: India's Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom came into force on Thursday, granting duty-free access to nearly all Indian exports to the UK and marking the start of the country's most comprehensive bilateral free trade agreement.
The agreement removes tariffs on about 99% of tariff lines, covering almost 100% of the value of India's exports to the UK.
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The government said the agreement is expected to create new opportunities for small businesses, farmers, fishermen, innovators, women entrepreneurs and labour-intensive industries by improving access to one of India's largest export markets.
"This is India's most comprehensive Free Trade Agreement (FTA), and it will bring prosperity by creating numerous jobs and business opportunities," the Press Information Bureau (PIB) said in a statement.
The government added that increased competition from the agreement would gradually expose Indian manufacturers to international standards while giving consumers access to more competitively priced, high-quality goods.
Plans underway
Officials said businesses are already preparing to increase shipments to the UK under the new tariff regime.
According to the PIB, India's gems and jewellery industry expects exports to the UK to rise 230% to $2.5 billion within three years, while engineering goods exporters forecast shipments to almost double to $7.5 billion over the next four to five years.
The trade agreement was signed last year in the presence of Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer after years of negotiations.
The government said the pact comes into effect at a time when Indian exports have continued to grow despite a challenging global trade environment.
The agreement is also expected to support the government's long-term Viksit Bharat 2047 agenda by expanding export opportunities, attracting investment and strengthening trade ties between the world's fifth- and sixth-largest economies.
