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Economy

India-UK CETA Trade Pact: Implications for Exports, Services, and MSMEs

Livemint - EconomyPrelims · EconomyMains · GS3 Economy

The India-UK Comprehensive Economic and Trade Agreement (CETA) has come into effect, offering duty-free access for 99.5% of Indian exports and expanding services trade opportunities, marking India's first major FTA with a developed economy.

  • Comprehensive Economic and Trade Agreement (CETA) is a wide-ranging trade pact covering 30 chapters, including digital trade, government procurement, and labor standards, designed to deepen economic ties between India and the UK.
  • The agreement provides duty-free access for 99.5% of India's exports by value, covering key sectors like engineering goods, textiles, leather, and gems & jewellery, which previously faced tariffs up to 16%.
  • Services trade gains include UK market access across 137 sub-sectors like IT, finance, and education, with improved professional mobility and mutual recognition of qualifications.

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