The recently signed Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom is poised to create multifold employment opportunities in the services sector and labour-intensive industries, the Ministry of Commerce and Industry said.
CETA secures unprecedented duty-free access for 99 percent of India’s exports to the UK, covering nearly the entire trade basket. This is expected to open up new opportunities for labour-intensive industries, such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery, alongside fast-growing sectors like engineering goods, automotive components, and organic chemicals.
The services sector, a key driver of India’s economy, will also reap significant benefits. The agreement provides greater market access in IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade.
Indian professionals, including those deployed by companies to work in the UK across all sectors, as well as professionals deployed on contracts such as architects, engineers, chefs, yoga instructors, and musicians, will benefit from simplified visa procedures and liberalised entry categories, making it easier for talent to work in the UK.
“This CETA marks a milestone in the trade relations between two major economies, setting an ambitious and balanced framework. It unlocks tariff-free access on 99% of Indian exports to the UK, covering nearly 100% of trade value- including labour-intensive sectors advancing the ‘Make in India’ initiative and setting the stage for bilateral trade to double by 2030. It includes ambitious commitments in goods and services, covering various sectors, while enhancing mobility for Indian professionals by simplifying access for contractual service providers, business visitors, and independent professionals," said Piyush Goyal, Union Minister for Commerce and Industry.
"The innovative Double Contribution Convention will exempt Indian workers and their employers from UK social security contributions for three years, boosting competitiveness and earnings. This FTA (Free Trade Agreement) will serve as a catalyst for inclusive growth, benefiting farmers, artisans, workers, MSMEs, startups, and innovators while safeguarding India’s core interests and accelerating our journey towards becoming a global economic powerhouse," the minister further added.
The agreement, according to the government, has been designed to make trade more inclusive. Women and youth entrepreneurs, farmers, fishermen, startups, and MSMEs will gain new access to global value chains, supported by provisions that encourage innovation, promote sustainable practices, and reduce non-tariff barriers.
CETA is expected to boost trade volumes in the coming years, creating jobs, expanding exports, and fostering a deeper, more resilient economic relationship between India and the United Kingdom.
The India-UK business leaders hailed the historic trade agreement and expressed optimism that it will usher in a new era in the Comprehensive Strategic Partnership, deepening collaboration not only in trade and the economy but also in emerging technologies, education, innovation, research, and health sectors.