Goyal hails India-UK FTA as boost to MSMEs, farmers, global market access
Comprehensive Economic and Trade Agreement, or CETA, is landmark step in India’s economic diplomacy, transformative opportunity for trade, jobs, says minister
Union Minister of Commerce & Industry Piyush Goyal on Thursday (July 24) hailed the signing of the India-UK Comprehensive Economic and Trade Agreement (CETA) as a "landmark" step in India’s economic diplomacy. The free trade agreement (FTA) is a transformative opportunity for trade, employment, and global cooperation, he added.
The deal was signed by Goyal and his British counterpart Jonathan Reynold in presence of Prime Minister Narendra Modi and his UK counterpart Keir Starmer.
It ensures duty-free access for nearly 99% of Indian exports, unlocking approximately $23 billion in new opportunities, particularly for labour-intensive sectors.
Export push
The agreement is set to benefit artisans, weavers, and workers in MSMEs across textiles, leather, footwear, gems and jewellery, toys, and marine products, said Goyal in a post on X, formerly known as Twitter. It also ensures duty-free exports for about 95% of agricultural goods and 99% of marine exports, enhancing incomes for farmers and fisherfolk, he added.
"The deal will also have a transformative impact on manufacturing-intensive sectors like engineering goods, electronics, pharma, chemicals, food processing, and plastics. This agreement will also provide Indian consumers high quality goods at competitive prices," he added.
According to Goyal, the pact will mark a "historic leap" for women through better financial access and integration into global value chains, especially across village industries and emerging sectors. The agreement supports inclusive and gender-equitable growth.
Agri gains
The CETA is expected to have a transformative effect on manufacturing-driven industries such as engineering, electronics, pharma, chemicals, food processing, and plastics, besides offering Indian consumers access to high-quality British goods at competitive prices, said Goyal in his X post.
Also read | Why India-UK FTA may push medicines out of ordinary Indians’ reach
Easing of mobility norms is another highlight. Indian professionals in IT, education, and services will benefit from enhanced access to the UK market, the minister said. A three-year exemption from social security contributions under the Double Contribution Convention is expected to support Indian workers and employers alike, he added.
"It is a significant breakthrough for Indian workers and their employers," he said. Chefs, yoga instructors, musicians and business visitors will also be benefitted from the pact, he observed.
Startup access
Startups will gain exposure to UK innovation ecosystems and investors, said Goya. The agreement is positioned as a boost to the 'Make in India' and 'Vocal for Local' campaigns, while strengthening India's position as a strategic global trade leader, he added.
Goyal also said that India's talent in IT, services, and education will gain from easier access to the UK's high-value markets.
India's exports to the UK rose by 12.6 per cent to $14.5 billion, while imports grew by 2.3 per cent to $8.6 billion in 2024-25.
The bilateral trade between India and the UK increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23.