The India-UK Comprehensive Economic and Trade Agreement (CETA) officially came into force on 15 July, marking a significant milestone in bilateral trade relations and opening new growth opportunities for India's export-driven industries. Labour-intensive sectors such as textiles, gems and jewellery, leather, footwear and engineering goods are expected to be among the biggest beneficiaries as 99 per cent of Indian exports now enjoy duty-free access to the UK market.
The agreement is expected to improve India's competitiveness against countries such as Bangladesh, Vietnam and Turkey, many of which have long enjoyed preferential access to the UK market. Exporters believe the removal of tariffs will lower costs, enhance pricing advantages and encourage higher export volumes over the coming years.
Labour-Intensive Industries To Lead Export Growth
The textile and apparel industry is likely to emerge as one of the biggest gainers under the pact, with tariff elimination expected to strengthen India's position in one of its largest premium export markets. The gems and jewellery sector also anticipates a sharp rise in shipments, while leather and footwear manufacturers expect improved market access and stronger demand from British buyers. Engineering goods, marine products, chemicals and processed food exporters are also expected to benefit from reduced trade barriers.
Beyond merchandise trade, the agreement includes provisions aimed at facilitating services, easing market access for Indian professionals and encouraging greater investment between the two countries. Industry bodies believe the pact will particularly benefit MSMEs by expanding export opportunities and integrating them more deeply into global value chains.
The India-UK trade agreement is expected to substantially increase bilateral trade over the coming years while supporting employment generation across export-oriented sectors. As businesses begin leveraging the new tariff regime, the agreement is seen as a major step toward strengthening India's global trade footprint and diversifying its export markets. |
