India–UK trade deal takes effect: What gets cheaper and which sectors benefit the most — all you need to know
The India-UK Comprehensive Economic and Trade Agreement (CETA), which came into effect on Wednesday, is expected to boost bilateral commerce by reducing trade barriers and
The India-UK Comprehensive Economic and Trade Agreement (CETA), which came into effect on Wednesday, is expected to boost bilateral commerce by reducing trade barriers and creating new opportunities for businesses of both sides. For Indian exporters, the pact opens the door to the UK's procurement market, valued at around £90 billion annually. At the same time, Indian consumers are also likely to benefit from lower prices on several premium British products as import duties have been reduced under the agreement. Who stands to benefit the most from India-UK CETA? The India-UK CETA gives zero-duty access to nearly 99% of India's exports, covering almost the entire value of goods India sells there. This essentially means that all those Indian products that previously attracted import duties can now enter the British market duty-free, making them more competitive against goods exported to the UK from Germany, China, France and other nations. Quick answers to key questions • 5 QUESTIONS 1 What is the India-UK Comprehensive Economic and Trade Agreement (CETA)? ⌵ The India-UK CETA is a trade agreement designed to reduce tariffs, widen market access, and increase economic cooperation between India and the UK, aiming to boost bilateral trade significantly. 2 Which sectors in India will benefit most from the CETA? ⌵ Key beneficiaries of the CETA include Indian farmers, labour-intensive sectors like textiles and leather, MSMEs, skilled professionals, and women entrepreneurs, all of which stand to gain through improved market access and lower trade costs.
3 How will the CETA affect prices of imported British products in India? ⌵ The CETA is expected to lower prices on several imported British products, including Scotch whisky and luxury cars, as tariffs are reduced gradually, benefiting Indian consumers over time. 4 Why were certain sectors protected in the India-UK CETA? ⌵ Sensitive sectors, such as agriculture and high-value products, were protected to safeguard domestic producers from sudden increases in competition due to tariff eliminations in the CETA. 5 How will the CETA impact small enterprises and MSMEs in India? ⌵ The CETA is expected to benefit MSMEs by lowering trade barriers, simplifying access to the UK market, and enhancing opportunities for innovation and exports, particularly in labour-intensive industries. Also Read | How EPF savings will benefit Indian professionals working in the UK “By granting zero-duty access on nearly 99% of India's exports, covering almost 100% of the trade value, the CETA is expected to strengthen India's export competitiveness,” the government said in a press release. The biggest beneficiaries are certain individuals, labour-intensive sectors and businesses that employ millions of Indians. These include Indian farmers and fisherfolk: Better access to the UK market through tariff elimination is expected to create new export opportunities and support incomes. Better access to the UK market through tariff elimination is expected to create new export opportunities and support incomes. Labour-intensive sectors: Sectors such as textiles, leather, footwear, gems and jewellery, handicrafts, food processing, auto components, plastics, and organic chemicals are poised to witness higher exports and job creation.
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