On Monday, Union Commerce and Industry Minister Piyush Goyal is scheduled to engage directly with key players in the leather and textile industries—two sectors set to benefit immensely from the FTA. These high-level discussions will center around eliminating trade barriers, leveraging duty-free access, and exploring export potential in the UK market.
With the agreement’s implementation, 99% of Indian exports to the UK will now be duty-free, ushering in a new era of competitive pricing and enhanced profitability for Indian manufacturers and exporters. From garments and footwear to processed textiles, Indian goods will enjoy a massive edge in one of the world’s most lucrative consumer markets.
India-UK FTA: A Gateway to Doubling Bilateral Trade by 2030
The Comprehensive Economic and Trade Agreement, finalized on July 24, marks a transformative milestone in India-UK economic relations. Valued currently at $56 billion, the trade volume between the two economies is projected to double by 2030 under the FTA’s progressive tariff relaxations and regulatory harmonization.
The duty exemptions will enhance India’s competitiveness in sectors such as pharmaceuticals, jewelry, machinery, marine products, engineering goods, and IT services. Simultaneously, the agreement will liberalize India’s import policy for various high-demand British products, including:
Luxury cars
High-end cosmetics
Premium whiskey
Chocolates and biscuits
Specialty cheeses and processed foods
This two-way liberalization ensures that consumers in both countries benefit from quality and variety, while domestic producers are equipped to scale up to international standards and expectations.
Stakeholder-Centric Campaign to Drive Inclusive Economic Gains
To ensure pan-India awareness and implementation, the government’s outreach program will feature more than 1,000 awareness events, which include:
State-wise workshops for SMEs and exporters
Interactive sessions with trade chambers
Dedicated meetings with state governments
Skill development sessions focusing on FTA documentation, export compliance, and regulatory standards
Regional awareness campaigns in vernacular languages
These programs are being tailored to ensure maximum participation from Tier 2 and Tier 3 cities, enabling grassroots industries to tap into global trade opportunities. The Ministry of Commerce will also disseminate FTA awareness toolkits, FAQ booklets, and sector-wise benefit charts, empowering entrepreneurs with actionable knowledge.
Key Sectors Poised to Reap Major Gains from India-UK CETA
1. Textiles and Apparel
With zero-duty access to the UK, Indian textile exporters are expected to experience a significant surge in order volumes. The agreement removes tariffs that previously averaged 10–12%, making Indian products more competitive than those from Bangladesh, Turkey, and Vietnam.
2. Leather and Footwear
The leather industry, especially footwear and accessories manufacturers, will benefit from enhanced market entry and volume expansion, thanks to the removal of stringent UK import duties and quotas.
3. Pharmaceutical and Medical Devices
Indian pharmaceutical companies will gain from simplified regulatory recognition, especially in generic drug approvals and medical devices certifications, streamlining export logistics and reducing costs.
4. Auto Components and Engineering Goods
By reducing or eliminating tariffs on precision engineering products, the FTA creates new avenues for auto component manufacturers and heavy machinery producers to tap into UK’s advanced manufacturing ecosystem.
Digital Trade and Services: A New Frontier
A key feature of the India-UK CETA is its forward-looking provisions on digital trade and services. India, being a global IT powerhouse, stands to gain from:
Cross-border data flow facilitation
E-commerce framework recognition
Remote service delivery compliance alignment
IT service certifications recognition
This is set to bolster India’s service exports, especially in cloud computing, AI development, fintech, healthtech, and cybersecurity services, cementing India’s dominance in the digital economy.
Benefits for UK Exporters and Indian Consumers
While India gains expansive market access in goods and services, British exporters too will see significant benefits. The agreement will lead to reduced tariffs on British-made automobiles, including luxury cars from Jaguar, Bentley, and Rolls-Royce. Similarly, Indian consumers will now enjoy more affordable access to premium imported items, such as:
UK-origin cosmetics and skincare products
Specialty alcohol and premium spirits
Artisan chocolates and organic food products
This will enrich the Indian retail ecosystem and elevate consumer choice—all without hurting domestic industry competitiveness.
Logistics and Infrastructure Ready for CETA Rollout
In tandem with the awareness campaign, the government is working to streamline customs clearances, trade documentation, and logistics infrastructure to ensure swift FTA execution. Ports, EXIM banks, customs agencies, and logistics partners are being trained and equipped for:
Digitized clearance processes
Simplified tariff coding
Faster export documentation
FTA certificate validation automation
The Ministry of Commerce is collaborating with the Ministry of Finance and CBIC to integrate the FTA framework into India’s National Trade Facilitation Portal, ensuring all stakeholders can access real-time information.
Looking Ahead: A Historic Step Towards Trade Supremacy
As the government launches this nationwide awareness drive, the India-UK CETA is poised to emerge as a model framework for future FTAs with other developed nations. The scale, depth, and bilateral scope of this agreement not only boost immediate trade volumes but also enhance India’s global credibility as a trustworthy trading partner.
With over 1,000 intensive programs rolling out within 20 days, the government is leaving no stone unturned in ensuring that India’s entrepreneurs, exporters, and SMEs are FTA-ready. The India-UK trade pact isn’t just a diplomatic victory—it is a decisive leap toward an Atmanirbhar Bharat with global ambitions.
