India and the United Kingdom (UK) have formally signed the Comprehensive Economic and Trade Agreement (CETA), a transformative step that redefines the economic engagement between the two nations. The landmark deal, signed on July 25, 2025, represents a significant leap toward enhanced bilateral trade, investment opportunities, and mutual economic growth under the leadership of Prime Minister Narendra Modi.

The agreement was inked by Union Minister of Commerce and Industry, Mr. Piyush Goyal, and UK’s Secretary of State for Business and Trade and President of the Board of Trade, Mr. Jonathan Reynolds. The signing ceremony signifies a historic turning point in India-UK relations, aiming to bolster economic integration, employment generation, and global competitiveness.

Duty-Free Access for 99% of Indian Exports

One of the most significant outcomes of CETA is duty-free access for 99% of India’s exports to the UK, a major breakthrough for Indian manufacturers, exporters, and labor-intensive sectors. This preferential access will benefit industries such as:

• Textiles and Garments

• Leather and Footwear

• Toys and Handicrafts

• Marine Products

• Gems and Jewellery

These sectors, which employ millions of Indian workers, especially in rural and semi-urban areas, are poised to see a sharp rise in exports, helping narrow India’s trade deficit and create new employment avenues.

Additionally, fast-growing sectors such as engineering goods, auto components, and organic chemicals are expected to gain a competitive edge in the UK market under the new tariff framework.

Services Sector Expansion and Digital Trade Growth

The services sector, a pillar of India’s economy and a major foreign exchange earner, is set to gain broader market access in key segments such as:

• Information Technology (IT) and IT-enabled Services

• Financial Services

• Education and EdTech

• Legal Services

• Digital Trade and E-commerce

With a growing demand in the UK for skilled Indian professionals and firms offering cost-effective services, the deal opens new channels for cross-border digital trade, remote service delivery, and high-skilled employment.

Liberalised Visa Regime for Professionals

CETA has also paved the way for simplified visa procedures and relaxed entry norms for Indian professionals in the UK. Categories of workers who stand to benefit include:

• Engineers

• Chefs

• Yoga Instructors

• Healthcare Professionals

• Architects and Consultants

These changes are expected to reduce bureaucratic delays, boost ease of movement, and ensure that India’s skilled workforce can access global markets more efficiently.

Additionally, a Double Contribution Convention has been included, which exempts Indian employees and their employers from UK social security contributions for three years. This provision will significantly enhance cost-effectiveness and competitiveness for Indian firms sending employees to the UK.

Boost to MSMEs, Startups, and Inclusive Growth

CETA isn’t limited to large corporations. The agreement includes inclusive trade policies aimed at empowering MSMEs, startups, women entrepreneurs, farmers, youth-led businesses, and traditional artisans. By offering low-barrier entry into the UK market and encouraging participation in global value chains, the pact aims to democratize export opportunities.

Special emphasis has been given to:

• Simplified customs and documentation processes for small businesses

• Capacity building and digital upskilling initiatives

• Funding channels and incubation support for innovative startups

This alignment with India's ‘Vocal for Local’ and ‘Make in India’ vision will help nurture grassroots enterprises and elevate them to global platforms.

Trade Ambitions: Rs. 4.83 Lakh Crore to Rs. 10 Lakh Crore by 2030

As of 2025, India-UK bilateral trade stands at Rs. 4,83,784 crore (US$ 56 billion). With CETA in place, both nations have set a mutual ambition to double trade volume by 2030. The agreement is projected to create:

• Thousands of new jobs across both economies

• Higher foreign direct investment (FDI) inflows

• Balanced trade practices with a focus on mutual gains

The deal is also expected to reduce non-tariff barriers, enhance intellectual property rights (IPR) cooperation, and establish clear standards for data security and sustainability protocols.

Encouraging Innovation, Sustainability, and Regulatory Alignment

Designed for the modern economy, CETA lays a strong foundation for:

• Environmentally sustainable trade practices

• Innovation in green technology

• Cooperation in climate change mitigation

Additionally, CETA sets frameworks for regulatory alignment, reducing friction in sectors like pharmaceuticals, biotechnology, and food safety standards.

India’s Growing Global Trade Footprint

This agreement follows India’s consistent efforts to expand its global trade footprint, seen earlier in deals with Australia (ECTA), UAE (CEPA), and other countries. The India-UK CETA is not just a trade agreement—it’s a statement of intent, positioning India as a reliable, high-value trading partner in an increasingly competitive global landscape.

It also complements India’s strategic goals of:

• Boosting exports

• Enhancing foreign investment

• Developing globally competent supply chains

Conclusion

The signing of the India-UK Comprehensive Economic and Trade Agreement (CETA) marks a historic shift in how both countries view and manage their economic ties. With 99% duty-free access, services sector liberalisation, and visa reforms, the agreement is poised to unlock a new era of cooperation, innovation, and prosperity.

By targeting inclusive growth, sustainable development, and strategic collaboration, CETA strengthens India's mission of Atmanirbhar Bharat (Self-Reliant India) and contributes significantly to its goal of becoming a $5 trillion economy. The partnership is not just about trade—it’s about building a resilient, forward-looking economic relationship that benefits the people of both nations for decades to come.

The Upcoming IPOs in this week and coming weeks are M&B Engineering, Cash Ur Drive Marketing, Renol Polychem, Jyoti Global Plast, Takyon Networks, Mehul Colours, Aditya Infotech, Sri Lotus Developers & Realty, Lakshmi India Finance, Jyoti Global Plast, B.D. Industries (Pune), Kaytex Fabrics, Umiya Mobile, Repono, NSDL.

The Current active IPO are Shree Refrigerations, Sellowrap Industries, Shanti Gold International, Patel Chem Specialities, Brigade Hotel Ventures, Indiqube Spaces, GNG Electronics, TSC India.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.