India-UK Free Trade Agreement Takes Effect: Exporters Hail New Era for Bilateral Trade
The Comprehensive Economic Partnership Agreement (CETA) between India and the United Kingdom came into force on July 15, granting Indian goods preferential access to the UK market. Commerce Secretary Rajesh Agrawal presented the Certificate of Origin to A. Sakthivel, chairman of the Apparel Export Promotion Council (AEPC), at a flag-off ceremony held at Bharat Mandapam in New Delhi on Wednesday.
UK High Commissioner to India, Lindy Cameron, attended the event, underscoring the strong economic partnership between the two nations. The ceremony marked the formal commencement of the trade deal, which has been in negotiation for several years.
Speaking at the event, Mr. Sakthivel said the implementation of the India–UK CETA would accelerate exports, attract investments, and position India as a trusted global sourcing destination. He highlighted the significance of the agreement for the apparel sector, which is a major employer in the country.
The Federation of Indian Export Organisations (FIEO) described the commencement of the CETA as a new chapter in the economic partnership between India and the UK. In a statement, FIEO said the agreement would mainly benefit micro, small, and medium enterprises (MSMEs), labour-intensive industries, farmers, artisans, and craftsmen.
The trade deal is expected to create improved export prospects for a range of Indian products, including rice, tea, coffee, spices, fruits, vegetables, processed foods, marine products, and other value-added agricultural items. These sectors are crucial for rural employment and income generation.
India and the UK have a long history of trade relations, with bilateral trade in goods and services estimated at over $50 billion annually. The CETA aims to reduce tariffs and non-tariff barriers, enhance market access, and strengthen supply chains between the two economies.
Exporters have welcomed the agreement, viewing it as a significant step towards diversifying India's export destinations and reducing dependence on traditional markets. The deal is also seen as a boost for the 'Make in India' initiative, as it provides Indian manufacturers with competitive access to the UK market.
However, some industry observers have noted that the full benefits of the agreement will depend on effective implementation, including streamlined customs procedures and compliance with rules of origin requirements. The government has assured that necessary infrastructure and support systems are in place to help businesses leverage the agreement.
The CETA is expected to deepen economic ties between India and the UK, opening up new opportunities for trade and investment. The flag-off ceremony marked the beginning of a new phase in the bilateral economic relationship, with exporters expressing optimism about the future.
