Zero-Duty Access Unlocks Massive Potential: India Launches Trade Offensive as UK CETA Enters Force

Zero-Duty Access Unlocks Massive Potential: India Launches Trade Offensive as UK CETA Enters Force​

The Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom, along with the vital Agreement on Social Security, has formally entered into force. This historic milestone represents a significant leap in strengthening the economic partnership of both complementary economies. The agreements provide zero-duty market access for nearly 99 per cent of India's exports, covering almost 100 per cent of the total trade value.

Trade and Services Gains from the Comprehensive Economic Agreement​

The CETA provides unprecedented opportunities across various sectors crucial to the Indian economy. These include textiles, leather, gems and jewellery, engineering goods, marine products, chemicals, and processed foods. Furthermore, MSMEs, farmers, and manufacturers are set to benefit significantly from this transformational agreement.

Beyond goods trade, the agreements offer substantial gains in services. Services account for over 50 per cent of India's GDP, and the commitments offered through CETA will provide a strong impetus to bilateral services trade. The High Commissioner noted that the framework will enable businesses in both nations to innovate more and grow together across advanced manufacturing, life sciences, and apparel industries.

Significance of Social Security and Bilateral Trade Milestones​

The Agreement on Social Security is set to enhance the global competitiveness of India's workforce. It specifically exempts Indian professionals undertaking temporary assignments in the United Kingdom from double social security contributions for up to five years.

Addressing industry stakeholders, Commerce Secretary Shri Rajesh Agrawal highlighted that CETA goes beyond previous free trade agreements due to its width and depth of coverage. The operationalisation of this agreement was confirmed by the leaders of both countries during a meeting at the G7 Summit in France thirty days prior to today.

Day-One Performance as Exports Exceed USD 140 Million​

The market received strong initial signals on the day of implementation. Over more than USD 140 million worth of goods were exported to the United Kingdom on the first day under the India-UK CETA.

To commemorate this milestone, events were held across the country to flag off these inaugural consignments. More than 50 export shipments were flagged off from over 20 locations, including major ports and airports in cities like Mumbai and Chennai. These consignments spanned products such as electronics, pharmaceuticals, and gems and jewellery.

Boosting SME Competitiveness and Industry Outlook​

Industry representatives strongly welcomed the CETA’s entry into force, noting that simplified certification procedures and duty-free access would significantly enhance Indian products' competitiveness in the advanced UK market. This development directly aligns with the vision of Viksit Bharat by providing enhanced access to a leading global market.

The High Commissioner, Ms. Lindy Cameron, emphasized that the agreement provides a decisive step towards a future-focused partnership. She noted that India was the United Kingdom's eleventh largest trading partner in 2025, with bilateral trade approaching £48 billion annually. The agreement is projected to increase bilateral trade by over £25 billion annually long term.

Streamlining Compliance and Future Commitment​

A key step towards easing business burdens involved the issuance of Certificates of Origin. These certificates were distributed on a self-certification basis through the eCoO 2.0 platform, a feature designed to reduce transaction costs, particularly for MSMEs.

Commerce Secretary Shri Agrawal stressed that the real measure of the Agreement’s success lies in its impact on creating jobs and livelihoods in both countries. He assured stakeholders that the Department of Commerce would actively work with industry clusters nationwide to communicate the full scope and benefits of CETA across all sectors.