Context

India and the United Kingdom have signed a landmark Comprehensive Economic and Trade Agreement (CETA) and launched the India–UK Vision 2035, laying a strategic foundation for deepening ties in trade, defence, technology, education, and climate action.

What is the India–UK CETA?

CETA is a Free Trade Agreement (FTA) providing:

• Zero-duty access on 99% of tariff lines for Indian exports.
• Coverage across goods, services, mobility, investment, and social security.
• Focus on empowering MSMEs, professionals, women, and youth.

Key Provisions of CETA

1. Goods & Market Access

• Zero-duty access on 99% of tariff lines, covering 100% of trade value between India and the UK.
• Major gains for sectors like textiles, gems & jewellery, leather, marine products, processed food, and toys.
• Tariffs reduced from up to 70% to 0%.
• Sensitive sectors like dairy are protected under exclusion lists.

2. Services & Mobility

• Greater access for Indian IT, financial, legal, education, architecture, and consulting services.
• Liberalised visa norms for:
  • Contractual Service Suppliers
  • Intra-Corporate Transferees
  • Independent Professionals
• Mutual recognition of professional qualifications (e.g., healthcare, engineering).

3. Double Contribution Convention (DCC)

• Social security exemption in the UK for Indian professionals for up to 3 years.
• Increases take-home salaries and enhances Indian firms’ global competitiveness.

4. Inclusive Growth Measures

• Tailored provisions for MSMEs, women entrepreneurs, artisans, youth, and farmers.
• Access to UK’s $63.4 billion agricultural market for Indian exports like:
  • Spices, tea, coffee, fruits, meat, and selected dairy products.
• Establishment of:
  • SME contact points
  • Digital trade facilitation
  • Paperless customs procedures.

India–UK Vision 2035: Strategic Roadmap

Structured around five pillars: Growth, Technology, Defence, Climate, and Education.

1. Growth & Jobs

• Target to double bilateral trade to $56 billion by 2030.
• Enhanced investment via:
  • Bilateral Investment Treaty (BIT)
  • UK-India Infrastructure Financing Bridge
  • British International Investment (BII)
• Focus on legal, insurance, and asset management regulatory harmonisation.

2. Technology & Innovation

• Joint efforts on:
  • AI, 6G, semiconductors, biotech, cybersecurity.
• Creation of India–UK Critical Minerals Guild for green technology.
• Support for startups through catapults, biofoundries, and incubators.

3. Defence & Security

• 10-Year Defence Roadmap for joint R&D in:
  • Electric propulsion
  • Underwater systems
  • Directed energy weapons
• Strengthened 2+2 dialogue, military exercises, and counter-terror efforts.
• UK to leverage Indian logistics in the Indian Ocean Region (IOR).

4. Climate & Clean Energy

• Partnership on:
  • Climate finance
  • Carbon markets
  • Offshore wind
  • Small Modular Reactors (SMRs)
• Joint support for global initiatives:
  • ISA, OSOWOG, ZEVTC, Blue Carbon Research
• Launch of Net Zero Innovation Partnership and agroforestry under India–UK Forest Partnership.

5. Education & People-to-People Ties

• UK university campuses in India, dual degree programs.
• Green Skills Partnership to bridge climate-tech skill gaps.
• Execution of Young Professionals Scheme, and mutual recognition of qualifications.

Strategic Significance for India

Conclusion

The India–UK CETA and Vision 2035 signify a transformative moment in bilateral relations—seamlessly integrating trade, mobility, innovation, and strategic cooperation. Anchored in inclusive development and sustainability, the partnership positions India to lead globally in the 21st century.

Source: PIB