The India-UK Comprehensive Economic and Trade Agreement (CETA), signed on Thursday, marks a significant leap in bilateral trade, especially for India’s agricultural, marine, and textile sectors. With over 95 per cent of agricultural tariff lines to attract zero duty, Indian exporters of fruits, spices, cereals, and processed foods like pickles and mango pulp stand to benefit immensely. The agreement not only aims to boost India’s agri-exports by over 20 per cent in three years but also streamlines technical barriers to trade, reducing time and cost for exporters. By securing duty-free access for emerging products like millets, organic herbs, and jackfruit, the pact supports crop diversification and resilience for Indian farmers.
Marine exports, too, receive a much-needed boost. Indian shrimp and fish products, previously taxed at up to 8.5 per cent in the UK, will now enter the market duty-free. This move is set to unlock growth opportunities in the UK’s $5.4 billion marine import sector, where India’s current share is just 2.25 per cent. The textile sector, long hampered by duty disadvantages compared to nations like Bangladesh and Cambodia, will now see improved competitiveness with zero-duty access to 1,143 tariff lines. This is likely to enhance India’s market share in the UK’s $26 billion textile import market and generate jobs back home.
The agreement also opens avenues for industrial goods and pharmaceuticals. With Indian exports of electric machinery, auto parts, and construction equipment expected to grow at over 12 per cent CAGR, the pact holds promise for manufacturing growth. The pharmaceutical sector—where Indian generics have long been cost-effective but underrepresented in the UK—will gain significantly with zero tariffs and easier access for medical devices. With India aiming for $100 billion in agri exports by 2030 and a stronger pharma footprint in Europe, this trade pact is more than just tariff cuts—it is a strategic gateway to future growth.